Treasuries Slump After Tepid Demand for Twin Auctions, Firm Data
- Jump in consumer confidence extends long-end selling
- Two, and five-year auctions both ‘tail’ as investors step back
This article is for subscribers only.
Treasuries slumped with yields trading at session peaks on Tuesday after two US government-debt auctions attracted tepid demand ahead of important inflation data due at the end of the week.
Treasury yields rose across the curve, with longer-dated maturities climbing more than 7 basis points. Sentiment weakened after auctions of $69 billion of two-, and $70 billion of five-year notes drew limited interest, leaving dealers holding more debt than has been the case for recent sales. The lackluster results came after a report showed upbeat consumer confidence and amid hawkish signals from Federal Reserve officials.