Treasury yields soaring, and the market is alert to a 20-year Treasury auction

Treasury yields soaring, and the market is alert to a 20-year Treasury auction
File image. The headquarters of the US Treasury Department is in Washington, DC, USA. August 6, 2018 (Reuters) / Brian Snyder

Written by Kate Dogwid

NEW YORK (Reuters) – US Treasury yields rose on Wednesday in line with a slight rally on Wall Street, trading in a range analysts expect to continue until the release of US data. Next week and the Fed’s monetary policy meeting.

* Little data has been released this week and yields are trading in narrow ranges. The benchmark yield has declined for 10 years since peaking at 1,776% on March 30th, and this week has remained in the range of 1,552% to 1,633%. On Wednesday it was trading at 1.570%, up 0.8 basis points.

* The 2-year yield remained flat, causing the yield curve between 2-year and 10-year debt modestly to 141.5 basis points from 140.8 a day earlier. Wall Street S&P 500 rose 0.32%.

* “Not much has happened. In the past few days, no data has been released. We have been supporting these levels. The next big data point will be the Federal Reserve. But again, we do not expect much in the way of signs around,” said Supadra Rajapa, head of US interest rate strategy. In Societe Generale Bank, “Monetary Policy at Next Week’s Meeting.”

* The FOMC will meet from April 27-28, and no significant monetary policy adjustments are expected.

* Later on Wednesday, the Treasury will sell $ 24 billion of 20-year bonds. While there has been an improvement in demand for new Treasury debt this month and in March, 20-year debt auctions have been plagued by weak demand since maturities were reintroduced to the market in 2020.

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(Prepared by Kate Duguid, edited by Manuel Farias in Spanish)

Zoe Marsh

 "Avid internet practitioner. Bacon fanatic. Zombie advocate. Tv lover. Beer geek. Alcohol fanatic."

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