Tumbling Treasuries Drive Yields to Highest Levels in a Month
- Two-year yields rise to 1.69% while the 10-year hits 1.74%
- Main catalyst was concern about ECB on Thursday: Jefferies
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The U.S. bond market’s September sell-off kept going on Tuesday, driving Treasury yields to the highest levels in a month, as traders gird for a potentially pivotal European Central Bank decision.
Treasuries came under pressure as the U.S. auctioned $38 billion of three-year notes and investment-grade corporations continued a wave of issuance, expanding the supply of bonds. But to Thomas Simons, an economist at Jefferies LLC, the biggest catalyst was concern that the ECB won’t meet market expectations for a resumption of quantitative easing.