U.S.’s $21 Billion Notes Sale Undermines Budding Rally
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Foreign investors showed the least demand for Treasury 10-year notes at a U.S. auction of the debt in 13 months, suggesting that the biggest bond-market rally in three years risks running out of steam.
Benchmark 10-year yields dropped from a four-week high as stocks fell amid forecasts for slower global growth and the U.S. posted the smallest budget shortfall for the first eight months of a fiscal year since 2008. Bill Gross, manager of the world’s largest bond fund, called German bund yields at almost the least versus their U.S. peers this millennium “a magnet” to lower Treasury yields. The U.S. will conclude this week’s auctions with a $13 billion sale of 30-year bonds tomorrow.