The Treasury will auction $105 bln in debt this week, from maturities as short as 70 days to as long as 10 years. The largest coupon issue is the 3-year note, which will be auctioned on Wednesday. As much as the Barron’s article on a Treasury bubble may have pushed up yields, making room for supply had as much to do with the rise, as did the waning of year-end effects.
EUR/USD is easing after running into resistance in the 1.3655/60 area and now trades at 1.3590. USD/JPY bounced from 92.80 support and trades now at 93.20.
