Bond Traders Close Out Chaotic Year With Key 1% Level in Sight
- Auctions, Senate elections may make elusive level achievable
- But 0.973% is hard to get through, Citigroup strategist says
Photographer: Teradat Santivivut/Moment/Getty Images
This article is for subscribers only.
Treasury traders are buzzing about 1% yields again, with all eyes on whether a massive slate of auctions next week and two key U.S. Senate runoff elections in early January could get them there.
Rates on 10-year notes got as high as 0.971% on Wednesday after investors shifted out of bonds as Brexit negotiations looked headed for resolution, something that did indeed arrive on Christmas Eve. And major catalysts ahead -- a trio of U.S. auctions totaling a record $176 billion amid low liquidity in a holiday-shortened week, plus the Jan. 5 vote in Georgia-- could further diminish the appeal of Treasuries, increasing rates.