Impressive 30-year Treasury Bond Sale Completes Strong Week of Auctions

The U.S. Treasury completed this week’s note and bond auction offerings today with another strong auction. U.S. Treasuries rallied off afternoon lows back to their starting levels after the U.S. Treasury’s $25 billion 30-yr bond sale. The auction drew a high yield of 4.360%, which stopped through the when-issued yield by two basis points. The bid-to-cover ratio (2.40x) was comfortably above average (2.38x), as was indirect takedown (70.7% vs 67.8% average). The S&P 500 continues to hover near record highs … Continue reading “Impressive 30-year Treasury Bond Sale Completes Strong Week of Auctions”

10-year Bond Auction Sees Strong International Takedown

U.S. Treasuries came off afternoon lows in reaction to strong demand at the $42 billion 10-yr Treasury note auction. The sale followed yesterday’s strong 3-yr note offering. The sale drew a high yield of 4.093%, which stopped through the when-issued yield by 1.2 bps while the bid-to-cover ratio (2.56x vs 2.49x average) and indirect takedown (71.0% vs 66.7%) were comfortably above their respective prior 12-auction averages. However, the 5-yr note and longer tenors continue with small losses while shorter tenors … Continue reading “10-year Bond Auction Sees Strong International Takedown”

Bonds Bounce After Sharp Losses Following Strong 3-year Treasury Note Auction

U.S. Treasuries traded to fresh highs after the completion of today’s $54 bln 3-yr note sale, which met strong demand. U.S. bonds climbed on Tuesday, bouncing from two days of sharp losses. No U.S. economic data on today’s calendar helped also. The sale drew a high yield of 4.169%, which stopped through the when-issued yield by a solid 0.8 bps while the bid-to-cover ratio (2.58x vs 2.68x) was below average. Indirect takedown (66.0% vs 63.1%) was solid. Issues in the … Continue reading “Bonds Bounce After Sharp Losses Following Strong 3-year Treasury Note Auction”

Stifled Demand at 7-year Treasury Bond Auction with International Buyers Returning

U.S. Treasuries completed this week’s note auctions with a $41bln 7-yr notes that met stifled demand, post-auction bonds climbed off their afternoon lows. The sale drew a high yield of 4.109%, which tailed the when-issued yield by 0.3 bps. That is 4.109% (When-Issued: 4.106%). However, the bid-to-cover ratio (2.57x vs 2.54x average) and indirect takedown (69.1% vs 68.9%) was up from 63.7% last month. In deference to yesterday’s poor 5-year auction. Equities bounced off their afternoon lows alongside the Treasury market’s … Continue reading “Stifled Demand at 7-year Treasury Bond Auction with International Buyers Returning”

Anemic 5-Year Note Treasury Auction, Tails Two Basis Points

U.S. Treasuries slid to fresh lows in response to the $61billion 5-yr note sale meeting poor demand. The auction drew a high yield of 4.055%, which tailed the when-issued yield by two basis points which was the largest tail since Sept 2022. The bid-to-cover ratio (2.31x vs 2.52x average) and indirect takedown (60.9% vs 68.8% average) were below the average seen at the past 12 auctions. The post-auction slide lifted the 5-yr yield to a fresh high for the week … Continue reading “Anemic 5-Year Note Treasury Auction, Tails Two Basis Points”

Solid Demand at 2 Year Treasury Auction with Higher International Demand

U.S. Treasuries hover near their morning lows as Treasury auctions flood 2024 with another week of heavy supply. The 2-year $60 billion two-year notes auction kicked off this weeks’ auctions and met strong demand. A high yield of 4.365% right at the when-issued yield of 4.365%. Notably six of the last eight 2-year auctions stopped through by an average of 0.7 basis points. The bid-to-cover ratio (2.57x vs 2.73x average) was a bit below average while indirect takedown (65.3% vs 62.9% … Continue reading “Solid Demand at 2 Year Treasury Auction with Higher International Demand”

Soft Demand at U.S. 20-year Treasury Bond Auction with Shorter Tenor Underperformance

Today’s $13 billion 20-yr bond auction met weak dollar demand. Treasuries shorter tenors underperformed. The high yield (4.423%) tailed when issued yield by 0.8 bps while the bid-to-cover ratio (2.53x vs 2.64x average) and indirect takedown (62.2% vs 70.7% average) were below average. Equities remain in negative territory with the S&P 500 (-0.8%) fighting to stay above its opening low. The desk gave a D auction grade Auction Highlights Auction grade: D Yields after the auction. Yields before the auction. … Continue reading “Soft Demand at U.S. 20-year Treasury Bond Auction with Shorter Tenor Underperformance”

Strong 30-year Treasury Bond Auction Completes Week’s Offerings

The U.S. Treasury completed this week’s note and bond auction offerings today. Following the $37 billion 10-yr note reopening, which met weaker demand and a solid 3-yr note sale we saw a strong long bond auction with a $21 bln 30-yr bond reopening. The long bond had hovered near its morning low until the auction reaction lifted it off today’s low. The sale drew a high yield of 4.229%, which stopped through the when-issued yield by 0.1 bps while the … Continue reading “Strong 30-year Treasury Bond Auction Completes Week’s Offerings”

U.S. 10-year Bond Auction Softer Than Solid 3-year Sale This Supply Week

U.S. Treasuries faced renewed selling to fresh lows after the $37billion 10-yr note reopening, which met weaker demand than yesterday’s solid 3-yr note sale. The 10-yr note auction drew a high yield of 4.024%, which tailed the when issued yield by 0.5 bps. Notably the sale drew the fourth consecutive tail in 10-year notes, that tenor has not garnered a stop-through since February 2023. The bid-to-cover ratio (2.56x) was a tad above average (2.48x), but indirect takedown (66.1%) was weaker … Continue reading “U.S. 10-year Bond Auction Softer Than Solid 3-year Sale This Supply Week”

International Buyers Return to 3-year Treasury Note Auction Ahead of CPI

U.S. Treasuries traded below their session highs after impulse buying in reaction to the just-completed $52 billion 3-year note auction which met solid demand. The auction drew a high yield of 4.105% (When-Issued: 4.116%) which stepped through by 1.1 basis points. The bid-to-cover ratio (2.67x) was under average (2.69x), but indirect takedown (65.3%) was comfortably above average (63.4%), reflecting strong interest by foreign buyers. Tomorrow will feature a $37 billion 10-yr note reopening. The desk gave a B rating on the … Continue reading “International Buyers Return to 3-year Treasury Note Auction Ahead of CPI”