30-year Treasury Yield to Three Week High after Weak Demand for Long Bond Auction

The US Treasury 30-Year Bond Sale of $21 billion which met weaker demand than sales of 3- and 10-yr notes over the past two days. The high yield was 3.106% vs 3.095% WI with a long tail of 1.1 bps. The report followed US Producer price inflation for July falling in much the same way as July consumer inflation released the day before. For the month PPI fell 0.5% (exp +0.3%) after the 1.1% increase in June.  U.S. Treasuries ended … Continue reading “30-year Treasury Yield to Three Week High after Weak Demand for Long Bond Auction”

U.S. 10-year Treasury Bond Auction Sees Strong Demand After CPI with 2.53 Bid to Cover 

The US Treasury 10-Year Bond Sale performed better than expected after a lighter than expected CPI number released early in the day. The auction garnered an A rating across the Fixed Interest desk with weak demand from the international market. The tail was -0.6 basis points with When-Issued 2.761% at time of the auction 3.018% and the high yield of 2.755% at the auction. The post-auction selling was heaviest in the long bond as shorter tenors remain near their best … Continue reading “U.S. 10-year Treasury Bond Auction Sees Strong Demand After CPI with 2.53 Bid to Cover “

U.S. 5-year Treasury Bond Auction High Yield of 2.86% with Solid Demand

US Treasuries held near their lows after the completion of today’s $46 billion 5-year note auction which received solid demand. The auction garnered a B+ rating across the Fixed Interest desk with stronger demand from the international market. The tail was -1.0 basis points with WI level at time of the auction 2.87% and the high yield of 2.86% at the auction. The domestic demand was below average reflected in the directs. The bid-to-cover ratio of 2.46x was above 6-month … Continue reading “U.S. 5-year Treasury Bond Auction High Yield of 2.86% with Solid Demand”

Solid U.S. 20-year Treasury Bond Auction with High Yield of 3.42% on Strong International Demand

U.S. Treasury long bond remained modestly higher after bouncing off its low in response to the recent completion of the $14 billion 20-year Treasury bond reopening, which was met with lukewarm domestic demand, but solid international demand given the auction outbids. The high yield tailed the when-issued yield by 2.7 bps with the bid-to-cover ratio and indirect takedown well above average. The desk gave an A rating on the auction. The S&P 500 and Nasdaq 100 are in the upper … Continue reading “Solid U.S. 20-year Treasury Bond Auction with High Yield of 3.42% on Strong International Demand”

Strong 30-year Treasury Bond Auction After Red Hot CPI Shows Bond Market Expect Deceleration in Growth

The US Treasury 30-Year Bond Sale of $19 billion performed stronger than the recent steady 3 and dismal 10-year auctions. The report followed US consumer inflation hitting +9.1% y/y vs +8.6% expected. Prices for energy jumped 41.6% from a year earlier, the most since April of 1980 and food prices jumped 10.4%, the largest 12-month increase since February of 1981. The tail was -1.8 basis points with WI level at time of the auction 3.133% and the high yield of … Continue reading “Strong 30-year Treasury Bond Auction After Red Hot CPI Shows Bond Market Expect Deceleration in Growth”

U.S. Treasury Bond Recap – Shorter Tenors Weakened Most in June as Growth Concerns Grew

U.S. Treasuries closed the June quarter off Thursday rallying for the second consecutive day of strong gains across the curve. The 10-year yield has in recent weeks retreated from an end-of-day high of 3.482% reached on June 14 after mounting one of its fastest increases in history to start 2022. Thursday’s advance pressured the 10-yr yield back below its 50-day moving average (2.994%) to its lowest level in over three weeks. For the half year investment-grade bonds, as measured by … Continue reading “U.S. Treasury Bond Recap – Shorter Tenors Weakened Most in June as Growth Concerns Grew”

Weak Demand for U.S. 7-year Treasury Bond Auction With 3.280% High Yield and 2.1 bps Tail

Treasuries moved lower after the US Treasury 7-Year Bond Sale garnered a D- rating across the fixed Interest desk with weak demand from the international market. Indirects took down 61.9% compared to 77.9% previously. The tail was -2.1 basis points with WI level at time of the auction 2.801% and the high yield of 3.259% at the auction. This was another long tail, yesterday’s 10-year sale tailed by 3 bps, which was the most since 2010. Equity markets continued to … Continue reading “Weak Demand for U.S. 7-year Treasury Bond Auction With 3.280% High Yield and 2.1 bps Tail”

U.S. 20-year Treasury Bond Auction with High Yield of 3.488% on Lukewarm Demand

U.S. Treasuries held just below their best levels of the session in response to the recent completion of the $14 billion 20-year Treasury bond reopening, which was met with lukewarm demand. The 3- and 5-year notes trading slightly ahead of other tenors. The high yield tailed the when-issued yield by 0.2 bps with the bid-to-cover ratio and indirect takedown just above average. The desk gave a C rating on the auction. The S&P 500 and Nasdaq 100 are just below … Continue reading “U.S. 20-year Treasury Bond Auction with High Yield of 3.488% on Lukewarm Demand”

30-year Treasury Bond Auction Sees Stronger Demand than 10 and 3year Notes ahead of Hot CPI and PPI

The US Treasury 30-Year Bond Sale of $22 billion performed stronger than the recent dismal 3 and 10-year auctions ahead of tomorrow’s CPI report. The report followed the ECB meeting which sent European yields higher, with particular selling in the European peripherals such as Italy against the Bund. The tail was 1.5 basis points with WI level at time of the auction 3.20% and the high yield of 3.185% at the auction. The Fixed Interest desk rated it an B+ … Continue reading “30-year Treasury Bond Auction Sees Stronger Demand than 10 and 3year Notes ahead of Hot CPI and PPI”

Another Weak U.S. 10-year Treasury Bond Auction Graded D Minus with High Yield of 3.03% and 1.2 Basis Point Tail 

The US Treasury 10-Year Bond Sale performed worse than expected ahead of a likely hot May CPI number released later in the week, garnering a D- rating across the Fixed Interest desk with weak demand from the international market. The tail was -1.2 basis points with WI level at time of the auction 3.018% and the high yield of 3.03% at the auction. Soft demand after yesterday’s $45 billion 3-yr note sale. The post-auction selling was heaviest in the long bond … Continue reading “Another Weak U.S. 10-year Treasury Bond Auction Graded D Minus with High Yield of 3.03% and 1.2 Basis Point Tail “