Economics
Tame Inflation Makes $131 Billion Bond-Auction Deluge Palatable
- 10-year Treasury yield is close to lowest level since 2017
- U.S. to offer 2-, 5-, 7-year notes this week, plus floaters
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A $131 billion deluge of Treasury notes is about to hit with yields at their lowest in more than a year. But bond traders can take heart: This week is also expected to bring confirmation that inflation remains tame, which could bolster demand.
The trade impasse enveloping the U.S. and China has put global economic growth in question and is driving investors to the safety of Treasuries. The yields on maturities that the Treasury Department will offer -- 2-, 5- and 7-year notes -- are the lowest since at least early 2018.