Trump Trades Unwind in Bonds, FX on Blowout Treasuries Auction
- U.S. 10-year note sale attracts strongest demand since June
- Treasuries pare gains amid slate of corporate issuance
Schmelzing: Perfect Storm Can Quickly Turn Bond Market
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Treasuries gained and the dollar declined after a $20 billion 10-year U.S. note auction drew the strongest demand since June, giving renewed impetus to traders who’ve been abandoning trades amassed in the wake of Donald Trump’s election victory.
The benchmark 10-year Treasury yield fell as much as five basis points to 2.33 percent, touching the lowest since November, before ending little changed amid corporate issuance, Bloomberg Bond Trader data show. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, sank 0.2 percent after earlier increasing as much as 0.8 percent.