30-year bonds on the docket today
$15 billion of long bonds will be auctioned today at 1 pm ET (1700 GMT). They're trading at about 3.03% in the when-issued market but that will vary until the deadline.
On Tuesday and yesterday, sales of 3-year and 10-year notes had higher yields than anticipated and both results led to USD/JPY buying that eventually squeezed the pair to multi-week highs.
Today, however, the mood in markets is different. USD/JPY is under pressure rather than drifting higher. 30-year bond yields are down 0.4 bps on the day to 3.0367%.
There is also talk that the spec market was overly long 10s yesterday and that's now balanced out. What could keep bids away are the CPI and retail sales reports tomorrow. Those will help clear up how the economy is doing and how likely the Fed is to continue hiking.
The final factor is talk of an ultra-long bond. Treasury officials are studying it.
