U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand

Treasuries have moved to their best levels of the day after the US Treasury 20-Year Bond Sale garnering a B- rating across the fixed Interest desk with strong demand from the international market. The tail was -1.4 basis points with WI level at time of the auction 2.665% and the high yield of 2.651% at the auction. The long bond maintaining its leadership with equity markets selling off. Today’s $17 bln 20-yr bond -0.2 basis point indicative of strong demand. … Continue reading “U.S. 20-year Treasury Bond Auction with High Yield of 3.29% on Higher International Demand”

Solid 30-year Treasury Bond Auction with High Yield of 2.997% Follows CPI and PPI

The US Treasury 30-Year Bond Sale of $22 billion performed stronger than the recent 3 and 10-year auction after today’s PPI report. The tail was 0.9 basis points with WI level at time of the auction 3.006% and the high yield of 2.997% at the auction. The Fixed Interest desk rated it an A after yesterday’s C- on the 10-year auction. The bid-to-cover ratio of 2.30x was below average 2.31x, as was indirect takedown 65.2% vs 65.8% average. The desk … Continue reading “Solid 30-year Treasury Bond Auction with High Yield of 2.997% Follows CPI and PPI”

Weak U.S. 10-year Treasury Bond Auction Graded C Minus with High Yield of 2.943% and 1.4 Basis Point Tail 

The US Treasury 10-Year Bond Sale performed worse than expected following the hot April CPI number released earlier in the day, garnering a D+ rating across the Fixed Interest desk with strong demand from the international market. However, the tail was -1.4 basis points with WI level at time of the auction 2.929% and the high yield of 2.943% at the auction. Soft demand after yesterday’s $50 billion 3-yr note sale. The post-auction selling was heaviest in the long bond as … Continue reading “Weak U.S. 10-year Treasury Bond Auction Graded C Minus with High Yield of 2.943% and 1.4 Basis Point Tail “

Strong U.S. 3-year Treasury Bond Auction with High Yield of 2.802%

The US Treasury 3-Year Bond Sale performed much better than expected, garnering an A- rating across the Fixed Interest desk with strong demand from the international market. The tail was -.3 basis points with WI level at time of the auction 2.812% and the high yield of 1.809% at the auction. Solid demand ahead of the results of this month’s auctions of $36 billion worth of ten-year notes and $22 billion worth of thirty-year bonds on Wednesday and Thursday, respectively. … Continue reading “Strong U.S. 3-year Treasury Bond Auction with High Yield of 2.802%”

Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected

The Federal Reserve raised rates by a half of a percent at their May meeting. This was the first time the bank raised rates this much since May 2000 when the Fed was led by Alan Greenspan. The Central Bank raised interest rates by 0.50% (to a target of 6.5%) back then. That was the last time the Fed would ever raise interest rates by that much in one move until day. The rate hike was priced in. The Balance … Continue reading “Federal Reserve Raises Rates 50 Basis Points First Time Since 2000 as Expected”

Japan Adds to Bond Route Selling Treasuries as Currency Hedging Costs Soar

Bonds have collapsed at a rapid pace with soaring inflation and a one-way market. The US dollar has soared at the same time with the BOJ and the Fed Reserve at difference policy ends. The Japanese Central Bank still is an aggressive buyer of JGB’s while the Fed pares its $9 trillion balance sheet. Japanese institutional managers are now selling US bonds, BMO Capital Markets shows they have offloaded almost $60 billion over the past three months. One could argue this … Continue reading “Japan Adds to Bond Route Selling Treasuries as Currency Hedging Costs Soar”

30-year Treasury Bond Auction with High Yield of 2.815% Follows Screeching PPI

The US Treasury 30-Year Bond Sale of $20 billion performed stronger than the recent 3- and 10-year auction after today’s Scorching report. The tail was 0.9 basis points with WI level at time of the auction 2.806% and the high yield of 2.815% at the auction. The Fixed Interest desk rated it a B- after yesterday’s F on the 10-year auction. The bid-to-cover ratio of 2.30x was below average 2.31x, as was indirect takedown 65.2% vs 65.8% average. The desk … Continue reading “30-year Treasury Bond Auction with High Yield of 2.815% Follows Screeching PPI”

Weak U.S. 10-year Treasury Bond Auction Graded F with High Yield of 2.720%

The US Treasury 10-Year Bond Sale performed worse than expected following the hot March CPI number released earlier in the day, garnering an F rating across the Fixed Interest desk with strong demand from the international market. The tail was -2.2 basis points with WI level at time of the auction 2.690% and the high yield of 2.720% at the auction. Soft demand after yesterday’s $50 billion 3-yr note sale. The post-auction selling was heaviest in the long bond as shorter … Continue reading “Weak U.S. 10-year Treasury Bond Auction Graded F with High Yield of 2.720%”

Strong U.S. 20-year Treasury Bond Auction with High Yield of 2.651%

Treasuries have moved to their best levels of the day after the US Treasury 20-Year Bond Sale performed much better than expected, garnering an A+ rating across the fixed Interest desk with strong demand from the international market. The tail was -1.4 basis points with WI level at time of the auction 2.665% and the high yield of 2.651% at the auction. Today’s $16 bln 20-yr bond tail is negative indicative of strong demand. The average is +0.8 basis points … Continue reading “Strong U.S. 20-year Treasury Bond Auction with High Yield of 2.651%”

Extreme Commodity Prices Volatility Pressures Commodity Trading Houses Bonds

The explosion in commodity prices volatility has seen coal, oil and natural gas prices surge, the Nickel market halted for a week and grains prices hitting record highs. Unintended consequences and contagions flow through in heavily levered and multi-faceted financial markets. In the past week, the yield on Gunvor Group Ltd. bonds due in 2026 rose as high as 16.8%, Trafigura Group bonds due in 2025 rose to almost 10%. Credit default swaps on Louis Dreyfus Co. debt on Friday … Continue reading “Extreme Commodity Prices Volatility Pressures Commodity Trading Houses Bonds”