Home Stock Market U.S. Treasury yields hold steady after solid debt sales

U.S. Treasury yields hold steady after solid debt sales


The US Treasury yield largely ended when it began Wednesday’s exciting session with investors showing it was not difficult accepting a large auction for government paperwork.

Treasures are doing?

Rate of 10-year treasury bonds
BX: TMUBMUSD10Y

increased by 0.4 bps to 1,566%. 2-year bond yield
BX: TMUBMUSD02Y

remained at 0.149%, while the yield on the 30-year term
BX: TMUBMUSD30Y

trading rose 0.5 basis points to 2,264%.

What is driving the Treasures?

Despite pent-up predictions of a $ 24 billion auction for long-standing US Treasury bonds on Wednesday afternoon, sales have struggled to inspire fast trading in a largely quiet session. .

However, the results show that appetite for government bonds is still strong, as US and foreign investors are returning to the Treasury as the market stabilizes in April.

Global equities recovered some of their losses on Wednesday, despite fears that a pandemic was on the rise in a number of countries. Those concerns may have fueled demand for secure assets like the Treasury this month.

Bank of Canada interest rate rates are unchangedBut said it would cut its asset purchases by $ 3 billion per month, reflecting an improved economic outlook.

What did the market participants say?

“Markets are questioning the pace of reopening. Reports of declining US immunization rates are part of the story. It is too early to determine whether this is a result of local data, concerns about vaccine side effects or a rapid meeting with limited vaccine demand, ”said Lauren Goodwin, economist. Investment and strategic investment portfolio at New York Life Investments, said in e-mail comment.

Although she notes that the yield slide could be more driven by other factors such as the expected decrease in interest rate hikes.

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