Global Bond Rally Faces Supply Test as US Refunding Starts
- Powell’s less hawkish remarks and weak jobs fuel bond gains
- US to sell $125 billion in 3-, 10- and 30-year debt this week
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The global bond rally ignited by hopes of lower interest rates in the US will face its first big test on Tuesday, when the Treasury kicks off $125 billion of sales this week.
Investors who have been piling into bonds since Federal Reserve Chair Jerome Powell struck a less-hawkish-than-feared tone last week will have to absorb $58 billion in three-year Treasuries on Tuesday as part of the so-called quarterly refunding auctions. A combined $67 billion of 10- and 30-year Treasury securities will come later this week.