The recent $39 billion auction of 10-year Treasury notes saw weak demand, leading to yields nearing 4.6%. This auction had the most significant dealer retention since Nov. 2022, with only 24% being taken up. Foreign bidders dropped to 62%, and the bid-to-cover ratio was 2.34, below the average. The stress in the Treasury market is evident, with a tail of 3.1 bps compared to the average of 0.7 bps in the last six auctions. The yield on 10-year JGB futures dropped by 0.35 points to 144.77, while the 30-year JGB yield rose to 1.900%.
Treasury sale of $22 billion 30 Year Bonds was a bit weak. The yield at 4.671% is a full basis point higher than the yield at the bidding deadline.
US 4-WEEK BILL AUCTION HIGH RATE 5.270% BID-TO-COVER RATIO 2.95 US SELLS $70 BLN AWARDS 62.22% OF BIDS AT HIGH.
🔴 US TO SELL $70 BLN 6-MONTH BILLS ON APRIL 15, TO SETTLE ON APRIL 18.
🔴 US TO SELL $70 BLN 3-MONTH BILLS ON APRIL 15, TO SETTLE ON APRIL 18.
🔴 US TO SELL $46 BLN 52-WEEK BILLS ON APRIL 16TH, TO SETTLE ON APRIL 18TH.
🔴 US TO SELL $13 BLN REOPENED 20-YEAR BONDS ON APRIL 17TH, TO SETTLE ON APRIL 30TH.
US 30-YEAR YIELD EXTENDS CLIMB TO YTD HIGH 4.67% BEFORE AUCTION
#TreasuriesToday: Yields mixed inside yday's selloff ranges (YTD highs, biggest daily loss since Aug 2022). Next week's auction sizes at 11am: $13b 20Y reopening (2nd) & $23b 5Y TIPS new issue projected. $22b 30Y reopening (2nd) at 1pm. WI yield 4.64% > 30Y results since Nov.
YIELD ON 10-YR JGB RISES TO HIGHEST SINCE NOV 14; LAST UP 5.5 BPS AT 0.850%
YIELD ON 30-YR JGB UP 3.5 BPS AT 1.900%
Observable stress in the Treasury market is back. @pboockvar reports: "After a weak 3 yr note auction seen yesterday, the 10 yr auction today was bad. It tailed by 3 bps, rather big, to yield 4.56%. Also, the bid to cover of 2.34 was well below the one year average of 2.49.…
BENCHMARK 10-YR JUNE JGB FUTURES DOWN 0.35 PTS AT 144.77
🔴 JUNE 10-YEAR JGB FUTURES (2JGBV1) DOWN 0.35 POINTS AT 144.77.
US 10-year Treasuries are having their worst day since May 2023, with yields surging after the one-two punch of a hot CPI and a bad auction. @pboockvar: "10 yr auction was bad...Dealers were left with 24% of the auction, which is the most since Nov. 2022." https://t.co/bPiQPP6NE4
Another ugly Treasury auction, this time in the 10YR. Some will blame the CPI this am, but there's no sugar coating here: - Tail was 3.1 bps vs. *0.7 bps avg* of last 6 auctions - Foreign bidders *dropped to 62%* from 71% in Feb. - Bid to Cover was a *measly 2.34* vs 2.52… https://t.co/vlr1i9v0RO
Weak Demand for $39 Billion Auction Sends 10-Year Treasury Yields Near 4.6% https://t.co/hebK4d7TN9 via @wsj