Reply To: Bond Traders Weekly Outlook: US Treasury Auctions Outperform Ahead of FOMC

#51997
Truman
Participant

U.S. Treasuries modestly lower start with longer tenors expected to pace the early selling.

Overnight action very limited, considering markets in China, Hong Kong, South Korea, and Singapore were closed for Lunar New Year celebrations and will remain closed tomorrow. Action in Europe has also been on the subdued side.

Most notably, a couple ECB policymakers continued speaking about the need for more rate hikes. Economic data during the U.S. session will be limited to the 10:00 ET release of the Leading Index for December (consensus -0.7%; prior -1.0%).

Crude oil has climbed past last week’s high to a level not seen since early December while the U.S. Dollar Index is down 0.1% at 101.93.

Yields:
2-yr: -2 bps to 4.18%
3-yr: UNCH at 3.84%
5-yr: +1 bp to 3.58%
10-yr: +2 bps to 3.50%
30-yr: +2 bps to 3.68%