Bonds
Treasury Auction Draws Strong Demand Despite Key Risks Ahead
- Wednesday brings inflation readings and Fed policy statement
- Yields retain most of the surge caused by strong jobs data
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Bonds rallied — erasing some of the losses caused by last week’s strong employment data — after an auction of 10-year notes drew unusually strong demand despite its proximity to potentially destabilizing events on Wednesday.
The $39 billion 10-year note sale was awarded at 4.438%, compared with a yield of 4.458% in pre-auction trading at 1 p.m. New York time, the bidding deadline. That investors settled for a lower yield indicates excess demand, and yields throughout the market subsequently moved to lower levels.