US treasury to auction off $78 billion of 3, 10, and 30 year issues
The US treasury will auction off total of 7 8 billion of issues next week (in addition to their regular bill auctions).
They will actually reopen the 10 and 30 year issues from 2 months ago. Specifically, they will auction:
- $38 billion of 3 year notes on January 7
- $24 billion of 9 year, 10 month notes on January 8
- $16 billion of 29 year and 10 month bonds on January 9
The bonds will settle on January 15.
In addition, they will auction:
- $36 billion of six-month bills, and
- $42 billion of 3 month bills
Yields in the US are down today on flights into the safety of the treasuries. Markets her be concerned about geopolitical risks from North Korea and Iran.
- 2 year 1.553%, -1.6 basis points
- 5 year 1.642%, -4.9 basis points
- 10 year 1.857%, -5.9 basis points
- 30 year 2.323%, -6.5 basis points
After the auctions next week, the US will announce their employment report on Friday. Recall that last month the change nonfarm payroll was a higher-than-expected 266K. The expectations for this month is for 168K,
