Treasury auctions in line with expectations
Next week, the US treasury will auction 2, 5 and 7 year notes. The sizes announced are as per expectations.
- 2 year, $30 billion
- 5 year, $35 billlion
- 7 year, $29 billion
Of interest will be the demand from China.
Later today, the President is expected to announce $50B of new tariffs against China. China has threatened to counter punch with their own. One other way, would be to shun an auction or two (or three). China is of course, a big buyer of US debt.
The treasury will also auction of 3, 6 and 1 year bills as well.
Lots of supply.
In the debt market today we are not seeing a shunning of buying. US yields are sharply lower.
- two-year 2.270%, -3.5 basis points
- 5 year 2.62%, -5.4 basis points
- 10 year 2.815%, -6.8 basis points
- 30 year 3.043%, -7.6 basis points
Global yields are also lower with German 10 year notes falling to a 10 week low today. It is currently down -6.6 basis points at 0.526%.
