Treasuries Close Greater Following Ten-Year Note Auction

By | March 12, 2018

Treasuries moved higher throughout the trading session on Monday after showing an absence of direction in the morning.

Bond prices bounced back and forth throughout the unchanged line prior to moving to the benefit entering into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its cost, fell by 2.4 basis points to 2.870 percent.

The higher close by treasuries came after the Treasury Department’s auction of $21 billion worth of ten-year notes attracted a little above average need.

The ten-year note auction drew a high yield of 2.889 percent and a bid-to-cover ratio of 2.50, while the 10 previous ten-year note auctions had an average bid-to-cover ratio of 2.43.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being offered.

Previously in the day, the Treasury sold $28 billion worth of three-year notes, drawing in average need

The three-year note auction drew a high yield of 2.436 percent and a bid-to-cover ratio of 2.94, while the 10 previous three-year note auctions had an average bid-to-cover ratio of 2.93.

Trading activity was somewhat suppressed, nevertheless, with an absence of significant U.S. financial information keeping some traders on the sidelines.

In the coming days, reports on inflation, retail sales, regional manufacturing activity, housing starts and commercial production are likely to attract attention.

Response to the Labor Department’s report on customer costs in the month of February is likely to impact trading on Tuesday.

Customer costs are expected to rise by 0.2 percent in February after climbing up by 0.5 percent in January. Core consumer prices, which exclude food and energy rates, are also expected to edge up by 0.2 percent.

Bond traders are likewise most likely to keep an eye on the outcomes of the Treasury’s auction of $13 billion worth of thirty-year bonds.

The material has actually been offered by InstaForex Business – www.instaforex.com

Leave a Reply

Your email address will not be published. Required fields are marked *