Booming Bond Rally Likely to Continue After Strong $16 Billion Debt Auction
- Unfortunately timed sale of 20-year bonds draws good demand
- Treasuries are headed for biggest monthly gain since March
This article is for subscribers only.
A historic surge in bonds got a green light to continue after an auction of 20-year debt that had traders fretting went off without a hitch.
The auction drew a slightly lower-than-expected yield, a sign that demand was stronger than anticipated, despite its unusual timing on a Monday of a holiday-shortened week. It was the first sale of long-maturity US Treasury debt since Nov. 9, when a 30-year bond auction produced unequivocally bad demand metrics.