Key Treasury Bond Auctions Along Yield Curve Next Week To Test Investor Resolve

Following the turmoil in the market this week and last from the new B.1.1.529 variant now known as Omicron has scientists concerned for two primary reasons. Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. The U.S. Treasury has announced that next week they will auction $54 billion three year notes $36 … Continue reading “Key Treasury Bond Auctions Along Yield Curve Next Week To Test Investor Resolve”

CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion

The Congressional Budget Office is out with an Estimated Budgetary Effects of Title VI, Committee on the Judiciary, H.R. 5376, the Build Back Better Act. CBO estimates that enacting this title would result in a net increase in the unified deficit totaling $115.1 billion over the 2022-2031 period. That increase in the deficit would result from an increase in direct spending of $147.2 billion and an increase in revenues of $32.1 billion. Some of those budgetary effects are associated with … Continue reading “CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion”

Soft U.S. 20-year Treasury Bond Auction With High Yield of 2.065%

The US Treasury 20-Year Bond Sale performed much worse than expected, garnering a D rating across the Fixed Interest desk. The tail was a lengthy 1.4 basis points with WI level at time of the auction 2.051% and the high yield of 2.065% at the auction. Heading into the auction the 10 year benchmark yield was down -2.1 basis points and the 30 year was down -0.9 basis points. Both were trading at or near the low yield for the … Continue reading “Soft U.S. 20-year Treasury Bond Auction With High Yield of 2.065%”

China and Japan’s holdings of U.S. Treasuries Fell in May While U.K. Holdings Increased

There has been constant chatter China will dump it’s US Treasury holdings. While they have fallen for the last 3 months, from $1120 to 1110 trillion the biggest seller was Japan in May. Ahead of Brexit the UK increased their holdings of US securities the U.S. Department of the Treasury’s Treasury International Capital (TIC) data for May 2019.