Treasuries Brace for Biggest-Ever 10-Year Auction to Test Demand
- Three-year notes drew strong demand despite pre-auction rally
- Wednesday’s $42 billion 10-year note to set high-water mark
The US Treasury building in Washington, DC.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Bond investors, still reeling from Treasuries’ worst two days in more than a year, are preparing for a new test on Wednesday when the government holds its biggest-ever sale of 10-year debt.
The rout that began Friday and pushed some yields to their highest levels this year has stalled amid renewed focus on US regional banks, where the latest slump in share prices has stoked haven demand. Three Treasury auctions totaling $121 billion this week could reignite the selloff, but a warm reception on Tuesday for the first of this week’s three Treasury note and bond sales has brightened the outlook. The 10-year sale is at 1 p.m. in New York.