Bond Traders Face $193 Billion Appetizer Before Fed Main Course
- U.S. auctions range in maturities from 4 weeks to 30 years
- Wall Street dealers could get stuck with more of the supply
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Bond traders have their work cut out for them before they get to the pivotal event for U.S. financial markets this week -- Wednesday’s announcement from the Federal Reserve.
The Treasury is about to pack $193 billion of debt sales into Monday and Tuesday. That potentially puts the onus on Wall Street to absorb the deluge if investors are reluctant to choke it down before the central bank’s decision. There is much at stake this week: In addition to a widely expected hike in borrowing costs, officials will also update their projected rate path for 2018 and beyond.