Treasury yields spiked (as prices slumped) to session highs on Tuesday 28th May 2024 following tepid demand in two U.S. government-debt auctions, ahead of significant inflation data due at the week's end.
Yields increased across the board, with long-term maturities climbing over 7 basis points. Sentiment soured after auctions of $69 billion in two-year notes and $70 billion in five-year notes saw limited interest, forcing dealers to hold more debt than usual. This came in the wake of a report on robust consumer confidence and hawkish comments from Federal Reserve officials.
Gregory Faranello, head of U.S. rates trading and strategy at AmeriVet Securities, noted the difficulty of "thinner markets coming off the holiday, coupled with two auctions in one day," and commented that "recent data has been marginally better."
The Treasury sold five-year notes at a yield of 4.553%, slightly above the pre-auction level of 4.54%. The five-year notes erased early gains be ...
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