Tag: auctions

The week’s auctions started off with solid demand for the $40 billion 3-year note sale which stopped 5s and shorter tenors from slipping to fresh lows, while 10s and 30s continued trimming their gains into the close. The short end saw buying in response to the completion of today’s $42 bln 3-yr Treasury note auction, which met solid demand ahead of tomorrow’s $38 bln 10-yr note sale. The sale drew a high yield of 4.398%, which stopped through the when-issued … Continue reading “Strong International Demand at 3-Year Treasury Bond Auction with High Yield 4.398%”

U.S. Treasuries completed this week’s note auctions with an underwhelming $35 bln 7-yr note sale. Treasuries trade at lows, the 10-yr yield is now just ten basis points below its high from July 7 (4.094%), the 5-yr yield remains 27 bps below its high from the first week of July. The sale drew a high yield of 4.087%, which tailed the when-issued yield by 1.3 bps while the bid-to-cover ratio (2.48x) was below the 12-auction average. Indirect takedown (69.8%), however, was … Continue reading “Underwhelming 7-year Treasury Bond Auction Completes Week’s Offerings With Higher Yields”

U.S. Treasuries subdued with tomorrow FOMC in focus after the completion of today’s $43 bln 5-yr note auction, which met weaker demand than yesterday’s 2-yr note sale. Not a surprise there with what we have been seeing on the curve and event risk. The auction drew a high yield of 4.170%, which tailed the when-issued yield by 0.4 bps while the bid-to-cover ratio (2.60x) was a bit above average (2.47x) and indirect takedown (64.4%) came up short of the prior … Continue reading “Tepid Demand in 5-Year Treasury Auction Ahead of FOMC”

U.S. Treasuries trade found a bid overnight with all tenors slim gains after the $42 billion 2-yr note sale met solid demand. The sale drew a high yield of 4.823%, which tailed the when-issued yield by 0.3 bps, while the bid-to-cover ratio (2.78x) and indirect takedown (65.4%) were comfortably above average but lower than last month’s excellent auction. The desk gave a C+ rating on the auction. This week brings some new supply. There is today’s $42 billion, 2-yr note … Continue reading “Treasury Auctions 2-year Notes at 4.823%, Part of $120 Billion Fresh Bond Supply This Week”

U.S. Treasuries curve continues to diverge, shorter-dated Treasuries near their lowest levels of the day while the long bond outperforms, trading just below highs. The 30-yr bond is holding highs after the completion of today’s $12 bln 20-yr bond reopening, which met decent demand but nothing spectacular. The sale drew a high yield of 4.036%, which tailed the when-issued yield by a tenth of a basis point. However, the bid-to-cover ratio (2.68x) was above average (2.62x) while indirect takedown (68.8%) … Continue reading “Strong Domestic Demand in 20-year Bond Auction Reflecting Curve Divergence”

U.S. Treasuries pulled back from their highs in reaction to the completion of today’s $18 bln 30-yr bond reopening meeting soft demand. The sale drew a high yield of 3.910%, which tailed the when-issued yield by two basis points. The bid-to-cover ratio (2.43x) was a above average (2.38x) while indirect takedown (69.0%) was below average (70.1%). The sale completed this week’s note and bond auction offerings with sales taking place against the backdrop of falling yields. The Fixed Interest desk … Continue reading “Soft Demand at US 30-year Treasury Bond Auction as Yields Fall”

US Treasuries trade on highs after the June CPI report came in tamer than expected, showing a 0.2% m/m increase in CPI (consensus 0.3%) and the yr/yr rate slowed to 3.0% from 4.0% in May. Core CPI was also tamer than expected at 0.2% (consensus 0.3%), slowing the yr/yr growth rate to 4.8% from 5.3%. Issues in the belly of the curve maintained their lead, dropping the 5-yr yield to a two-week low after recent selling briefly drove that yield … Continue reading “10-year Bond Auction Sees Lukewarm Demand with US Dollar Selling Off Since CPI Drop”

The week’s auctions started off with solid demand for the $40 billion 3-year note sale. The 5-yr note and longer tenors climbed to fresh highs while shorter tenors are still behind after two days of outperformance following the completion of the auction.  The sale drew a high yield of 4.534%, which stopped through the when-issued yield by 0.2 bps while the bid-to-cover ratio (2.88x) and indirect takedown (69.4%) were above average. The desk gave an A rating on the auction. … Continue reading “Strong International Demand at 3-Year Treasury Bond Auction with High Yield 4.534%”

U.S. Treasuries completed this week’s note auctions with excellent demand for the $35 bln 7-yr note auction. Treasuries trade just below session highs with 10-yr note and shorter tenors climb to fresh highs after the auction. The sale drew a high yield of 3.839%, which stopped through the when-issued yield by 1.1 bps while the bid-to-cover ratio (2.65x) and indirect takedown (75.3%) were comfortably above average. The desk gave an A- rating on the auction. Yesterday treasuries completed a $43 bln … Continue reading “Strong International Demand in 7-year Treasury Bond Auction Completes Week’s Solid Offerings”

U.S. Treasuries saw some renewed selling after the completion of today’s $43 bln 5-yr note auction, which met much weaker demand than yesterday’s 2-yr note sale. Not a surprise there with what we have been seeing on the curve. Today’s sale drew a high yield of 4.019%, which stopped through the when-issued yield by 0.7 bps while the bid-to-cover ratio (2.52x) and indirect takedown (68.1%) were just above average. Another factor was equities trade higher with the S&P 500 (+0.9%) … Continue reading “Softer Demand in 5-Year Treasury Auction Follows Yesterday’s Strong 2-Year”