Ghost of Horrific Treasury Auction Haunts Bond Market on Brink
- 7-year note is underperforming on curve by most since 2015
- Index of longer Treasury maturities sinks into bear market
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A battered Treasuries market faces another trying week as it will have to absorb a massive slate of auctions focused in maturities that have gotten pummeled amid a brightening outlook for growth and inflation.
It’s been a month since a disastrous seven-year auction sent the bond market into a tailspin that reverberated across financial markets and helped put benchmark yields on the path to prepandemic heights. Now that maturity is on the calendar again, with a $62 billion offering looming as a source of anxiety for dealers in the week ahead.