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Big week of bond sales ahead

By   || February 18, 2010 at 16:09 GMT
|| 7 comments || Add comment

the US Treasury just announced their slate of auctions for next week. The market will have to absorb

  • $44 bln 2-year notes on Tuesday
  • $42 bln 5-year notes on Wednesday
  • $32 bln 7-year notes on Thursday
  • $8 bln 30-tear inflation index notes on Monday

The Treasury estimates there are $26 bln of maturities at the end of February, which will create a little room in the market for some of the supply but the market will have to digest the rest.

Typically primary dealers will sell Treasuries ahead of the auction to cheapen-up prices before they have to bid on the bonds. That is happening now as 10-year note yields rise to 3.78%.

USD/JPY is rallying, now at 91.15  and EUR/USD is testing support at 1.3600.

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7 Responses to “Big week of bond sales ahead”

  1. Bear on February 18th, 2010 16:25 GMT

    ZZ, i think ud better change ur name to ZZ. Boone Pickens….everytime you come out in favour of Eur goin up.. it tanks…

  2. cheg on February 18th, 2010 16:31 GMT

    Considering the volatility in bonds and forex I find the stocks traders pretty calm (before the storm?)

  3. Bear on February 18th, 2010 16:32 GMT

    agree cheg,, n jaime thanks for the bond info.. learn something new everyday in fx

  4. cheg on February 18th, 2010 16:36 GMT

    It looks like the “intervention” by china on eur/usd (around 10 bio in futures) was smtg like a “coup d’épée dans l’eau”..

  5. Dave on February 18th, 2010 16:38 GMT

    Stocks are being held high due to the number of Puts out there. It’s in the interest of the market to have those options expire worthless.

  6. mystic on February 18th, 2010 16:42 GMT

    translation: death spike

  7. mystic on February 18th, 2010 16:56 GMT

    people trying to hurt those poor old technical traders out there

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