U.S. Treasuries trade on their highs
The complex opened the session on a slightly higher note, but additional buying showed up over the next couple hours, driving the market to fresh highs. The buying in Treasuries has taken place alongside a weak start in equities as technology stocks met continued selling after South Korea’s technology stocks faced renewed pressure that will carry into the start of the Wall Street session.
The overall news flow was on the light side, though Citadel Securities now expects a surprise rate hike announcement from the FOMC tomorrow, which has made some headlines.
There was no significant change in the U.S.-Iran conflict, though crude oil has continued its pullback toward $80/bbl,
U.S. Dollar Index is up 0.1% at 101.59, nearing its June high (101.80).
The U.S. Treasury will cap this week’s condensed note auction slate ahead of tomorrow’s FOMC Decision with a $44 bln 7-yr note sale at 13:00 ET.
Economic data released this morning had little impact on overall action, as the Consumer Confidence report for June (90.8; consensus 92.1; prior 92.2) showed a small dip.
Yield:
2-yr: -3 bps to 4.29%
3-yr: -4 bps to 4.31%
5-yr: -3 bps to 4.37%
10-yr: -3 bps to 4.62%
30-yr: -1 bp to 5.11%