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Powerful 30-year bond auctions push yields down

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Chicago — US Treasury yields fall,

Tuesday’s yield curve flattened in response to strong demand

Available next week, but for a 30-year bond auction

20-year bonds may be rocky.

Benchmark 10-year yield fell 5.8 at the end

The basis point was 1.618% and the 30-year yield was 5.

Basis points are as low as 2.2977%.

$ 24 Billion 30-Year Bond Sold at High Yield

2.320% bid-to-cover, demand gauge,

2.47 times above average.

Jeffreys analysts also called the results “great.”

“Given the lack of concessions, it’s very surprising.

Bid deadline. “

This offering followed a relatively smooth auction on Monday.

A total of $ 96 billion in 3 and 10 year notes.

“The market then sighed a little relief.

It’s been 30 years (auction), but now it’s 20 years

(Auction) next week, “said Gennadiy Goldberg, a senior rate in the United States.

Strategist at TD Securities.

He pointed out that there were no changes to the new plan

The Federal Reserve Bank of York released on Tuesday to buy about

$ 80 billion Treasury between April 14th and May

13.13.

“Auctions (for 20 years) can be a bit of a pain given

The Fed was probably expected to buy $ 3

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An additional $ 1 billion in that 7 to 20 year space, “Goldberg said.

The market has focused on auctions after the poor

Execution started in February by showing the provision of notes for 7 years

Yield goes up.

At the beginning of Tuesday, due to rising yields

Decreased 1.703% in 10 years after US Federal Health Agency

It is recommended to suspend the use of Johnson & Johnson’s

COVID-19 vaccine for concerns related to blood clots.

Consumer price data

Underlying inflation recovered in March, but not so violently

Ascend to fear.

Economy is boosted by coronavirus

Vaccine deployment and large-scale fiscal stimulus, consumer prices

The index soared 0.6% last month, the largest increase since August.

US Ministry of Labor after rising 0.4% in February 2012

Said on Tuesday. Core CPI, excluding food and energy prices,

After rising 0.1% in February, it rose 0.3%,

Year-on-year comparison.

Zachary Griffiths, Wells Fargo Macro Strategist

Charlotte, NC, while yields are rising

If much higher inflation is expected, the data show that:

“Inflation does not escape immediately,

Have (Federal Reserve Board) reassess that approach

Monetary policy in the near future. ”

Treasury Inflation Protection Securities for 10 Years

Break-even inflation has risen to 2.352%

After CPI data. The last was 2.327%.

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Treasury yield for 2 years.

It was the last basis, moving in step with interest rate expectations

The point is low at 0.1609%.

In the carefully monitored part of the yield curve,

Gap between 2-year and 10-year government bond yields

It was flatter after the auction.It was the last 4.16

Basis points are 145.71 basis points lower.

For Wednesday, the Fed will release beige

A summary of the books, the data collected by each and the anecdotes

12 regional Fed banks on current economic conditions based on

Survey and interview of key business contacts.

Kelly Ye, Research Director of Index IQ, a new unit

York Life Investments said the report will offer “more colors”

And “it will be a very important input from the people’s point of view.

Evaluation of the financial market. “

Tuesday, April 13 16:34 New York / 2034 GMT

Price current net

Yield% change

(Bps)

3 month invoice 0.020.0203 -0.003

6 months invoice 0.04250.0431 0.002

2-Year Bond 99-238 / 256 0.1609 -0.010

3-Year Bond 100-18 / 256 0.3514 -0.031

5-Year Bond 99-146 / 256 0.8386 -0.053

7-Year Bond 99-196 / 256 1.2853 -0.059

10-year note 95-136 / 256 1.618 -0.058

20-year bond 94-220/256 2.196 -0.045

30-Year Bond 90-232 / 256 2.2977 -0.050

Dollar swap spread

Last (bps) net

Change

(Bps)

US two-year dollar swap 11.50-0.25

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US 3-year dollar swap 11.50-3.00

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US $ 5-Year Swap 9.25-1.25

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US 10-year dollar swap 0.25-1.50

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US $ 30 Swap-25.00-2.25

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(Report by Karen Pierog, additional report by Gertrude

Chavez-Dreifus, New York; edited with Steve Orlovsky

Jonathan Oatis)

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Powerful 30-year bond auctions push yields down

https://financialpost.com/pmn/business-pmn/strong-30-year-bond-auction-pushes-yields-lower Powerful 30-year bond auctions push yields down

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