Big auction due at the top of the hour
The US Treasury will raise $38 billion at the top of the hour by selling 10-year notes. In the prior sale the high-yield was 0.653%, which was a record low.
A few days ago that looked certain to be broken with 10s trading near 0.50% but there's been a quick reversal in the past 5 trading days and the new notes are trading at 0.690% in the when-issued market.
In terms of FX, a yield higher than expected could push yields up and that would help USD/JPY extend its recent rally.
