The US is selling $24 billion in new 10-year auctions at the top of the hour. The ‘when-issued’ bid is 1.850% and anything below 1.90% breaks January’s all-time record.
The sale will replaced the current benchmark 10, which expires in Feb 2022 and is yielding 1.818%.
Due to the sloppy price action today and the worries in Europe, I wouldn’t exclude a large miss but it’s not likely to be enough to get yields below key support at 1.79%.
