Recent Treasury auctions in the US have shown poor results, with the 3-year and 10-year note sales experiencing high yields and significant tailing. A record block trade in short-term interest-rate futures preceded the release of CPI data, influencing gains in the Treasury market. The 10-year auction had a 24% dealer takedown and a 3.1 bps tail, marking a challenging day for US Treasuries.
Treasury's $39 billion sale of 10-year notes goes poorly https://t.co/vlSlZIPUSj
Horrific day for US Treasuries. Hot CPI sent 10s higher, then the 10s auction had a 24% dealer takedown and tailed 3.1 bps, the largest tail since Dec. 2022 and 3rd largest on record. The biggest one-day spike in the 10-year yield since the COVID panic, up 19 bps and climbing: https://t.co/01eBxwTQb0
A "wide tail" is a key characteristic of a bad bond auction. In the 10-Year Auction that just occurred, the tail was 3.1 bps (4.600% highs - 4.529% when issued), the highest since Dec. 2022 The "tail" matters because it reflects the willingness of buyers to step up to the…
Weak $39 billion 10-year Treasury auction: 3.1 bps tail + dealers took 24% (vs 15.7% avg), most since Nov 2022 [per BMO] https://t.co/yIyq9eI2K6
Bad 10yr auction… 3+ bps tail. 24% dealer takedown. Total rejection by the market.
Horrific 10-year Treasury auction on an already terrible day for yields. Paging the NY Fed desk.
Someone bet big on a benign US CPI report: A block trade in US short-term interest-rate futures Tuesday was the biggest on record and helped drive gains for the Treasury market. The trade involved futures on the Secured Overnight Financing Rate, the successor product to… https://t.co/6J9hvTFi0P
Bond Trader Places Record Futures Bet on Eve of Inflation Data - BBG https://t.co/jd4M7Ht6ry
A block trade in US short-term interest-rate futures Tuesday was the biggest on record and helped drive gains for the Treasury market. This of course is just before the CPI will be released Wednesday. https://t.co/dE9nMoWEUu via @markets
The Treasury sale of $58 billion 3 Year Notes was poor. The yield at 4.548% is a full two basis points higher in yield than the market at the bidding deadline.