Tag: Treasuries

Treasuries hit fresh highs after the completion of today’s $40 billion 3-yr note auction, which precedes tomorrow’s $32 billion 10-yr note reopening. There has been a strong safe haven bid today ahead of the US midterm election and collapse of FTT and FTX which has seen Bitcoin down 15% though 2021 lows. Foreign buyers (62.2%) were higher than expected. The sale drew a high yield of 4.605% which stopped through the when-issued yield by 1.2 bps while the bid-to-cover ratio (2.57x) was … Continue reading “Safe Haven Buying at 3-Year Treasury Bond Auction with US Mid Term Elections and Cryptocurrency Collapse”

U.S. Treasuries were higher for the third consecutive day after the completion of today’s $35 billion 7-yr note auction, despite weak demand there with a high yield of 4.027%. The fixed interest desk rated the auction with a D after domestic demand was the only key metric higher than the six-month average at 22.72% vs. 19.1%. Earlier the European Central Bank rose rates 75-bps. The 10-yr yield saw a ten-day low.  Equity markets were near their lows after the sale. Today’s … Continue reading “Weak Demand for U.S. 7-year Treasury Bond Auction as Growth Markets Shake”

Treasuries continued to rally as the market responded to the results of today’s $43 bln 5-yr note auction. Strong demand was seen with the high yield stopping through the when-issued yield by nearly two basis points. The bid-to-cover ratio (2.48x) and indirect takedown (68.0%) were above average. The desk gave an A- rating on the auction. The S&P 500 and Nasdaq indices were negative going in. Stock futures have been extremely volatile after Big Tech companies Microsoft and Alphabet earnings misses. … Continue reading “Solid 5-year Treasury Bond Auction After Big Tech Stock Earnings Misses”

U.S. Treasuries sold off, lifting lifted yields on all tenors to fresh highs for the year after the completion of a dismal $12 billion 20-year Treasury bond reopening, which was met with lukewarm demand. The high yield tailed the when-issued yield by 2.5 bps with the bid-to-cover ratio 2.50x. The desk gave an F rating on the auction. The US 30-year fixed mortgage rate hits a 20 year high of 7.22% today on the surge in the 10-year yield. The … Continue reading “Dismal U.S. 20-year Treasury Bond Auction as US 30 Year Fixed Mortgage Rate Hits 20 Year High 7.22%”

The US Treasury 10-Year Bond Sale performed worse than expected ahead of tomorrow’s CPI number release. The auction garnered a C- rating across the fixed Interest desk with weak demand from the international market and a tail 1.6 bps. The reopening follows yesterday’s disappointing 3-yr note sale and it sets the stage for an $18 bln 30-yr bond reopening tomorrow. Equities are treading water after today’s hot PPI. Today’s backtracking say Treasuries slip from their intraday highs, returning the long … Continue reading “10-year U.S. Treasury Bond Auction Lackluster Demand Ahead of Tomorrow’s CPI”

Treasuries felt pressure after the completion of an underwhelming $40 billion 3-yr note auction, which precedes tomorrow’s $32 bln 10-yr note reopening. Foreign buyers were much less than expected. The sale drew a high yield of 4.318% which tailed the when-issued yield by nearly a basis point while the bid-to-cover ratio (2.57x) was above average. The desk gave a D rating on the auction. The S&P 500 and Nasdaq 100 are near the low for the day. Bond markets have been rocked … Continue reading “Foreign Buyers Stayed Away from 3-Year Treasury Bond Auction”

U.S. Treasuries near best levels after 5-yr and 10-yr notes went to fresh highs in reaction to the completion of today’s $36 billion 7-yr note auction. The sale saw strong demand with a tail of one half of a basis point and the bid-to-cover ratio was above average. The strong auction followed today’s sharp drop in yields spurred on by the Bank of England action earlier. Today was the opposite to the past few days brutal sales of 5-yr and … Continue reading “Strong Demand in U.S. 7-year Treasury Bond Auction Follows Global Bond Strength Following BoE Action”

Treasuries continue to sell off, adding to their losses reaching fresh lows after the completion of today’s dismal $44 bln 5-yr Treasury note auction, which followed yesterday’s brutal $43 bln 2-yr note auction meeting weak demand. The sale drew a high yield of 4.228% with a long 2.6 bps tail and bid-to-cover ratio below their respective prior 6 and 12-auction average. The desk gave an F rating on the auction. The S&P 500 and Nasdaq 100 are near the low … Continue reading “Dismal F Rated 5-year Treasury Bond Auction Follows Yesterday’s Brutal 2-Year Sale”

Bond markets have been rocked in the past week as Central Banks globally ratcheted up rates. The benchmark 10-year Gilt was ravaged on Friday and today after the Bank of England released a statement. U.S. Treasuries haven’t been left out. U.S. Treasuries sit on their lows after widening their initial losses after today’s $43 bln 2-yr note auction met weak demand. The high yield of 4.290% stopped through the when-issued yield by 1.6 bps. The desk gave a D- rating … Continue reading “Brutal 2-year Treasury Bond Auction with Worst Tail Since Feb 2020”