Reply To: Traders Market Weekly: Fed Psychosis Reaches Next Level


U.S. Treasuries ended Tuesday on a sharply lower note with the bulk of the losses taking place at the open. Treasuries stumbled out of the gate after Treasury futures faced early morning pressure alongside other sovereign debt while commodity prices remained in focus. A surge in nickel, which eventually prompted a trading halt in London, was a headline story while crude oil approached yesterday’s high before pulling back during the day.

The long bond spent today’s session in a sideways range near its opening level but inched above its opening mark in the afternoon while shorter tenors added to their losses in the early afternoon with the 2-yr yield hitting its highest level since mid-December 2019 shortly after the completion of today’s $48 bln 3-yr note auction. The auction was met with lukewarm demand ahead of tomorrow’s $34 bln 10-yr note reopening and a $20 bln 30-yr bond reopening on Thursday. The U.S. Dollar Index slipped 0.2% to 99.06.

Yield Check:
2-yr: +9 bps to 1.63%
3-yr: +10 bps to 1.77%
5-yr: +12 bps to 1.81%
10-yr: +12 bps to 1.87%
30-yr: +9 bps to 2.24%