US Treasuries Jump as Another Smooth Auction Boosts Confidence
- Both of this week’s note sales have drawn strong buyer demand
- Year-end factors such as a dearth of other supply also at play
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US bonds rallied Wednesday, dragging down yields to levels not seen in months, as strong demand for an auction suggested that investors are confident inflation will keep decelerating.
Rates on five- to 30-year Treasuries declined by at least 10 basis points on the day, after an auction of five-year notes fared better than expected. The $58 billion sale was awarded at 3.801% — the lowest since May — after trading at 3.815% immediately prior to the auction, and mostly in excess of 3.86% since the sale was announced last week. Yields on 10-year Treasuries slumped to 3.79%, a rate last seen in July.