Treasuries rise before auction as US technology shares slump
Technology shares in the S&P 500 Index fell as much as 2.9% led by Nvidia Corp. shares, which slumped 5.6% after reporting quarterly results after the close Wednesday.
Technology shares in the S&P 500 Index fell as much as 2.9% led by Nvidia Corp. shares, which slumped 5.6% after reporting quarterly results after the close Wednesday.
John Velis, Americas macro strategist at BNY, said the US can lean on T-bills to plug that "substantial" gap, helping to explain why the reaction in US Treasuries to Friday's ruling has so far been muted.
The rally, which drove the rate on the benchmark 10-year note down six basis points to 4.03%, gathered steam as stocks slid and worries mounted about potential US military strikes on Iran.
Minutes of the Federal Reserve's Jan. 27-28 policy meeting revealed several officials suggested the central bank may need to raise interest rates if price growth remains stubbornly high.
Yields rose across all tenors, pushing the rate on benchmark 10-year bonds to 4.08% and putting them on course for their first two-day increase since the start of the month.
Benchmark 10-year yields closed one basis point higher at 4.06%, while the policy-sensitive two-year yield climbed three basis points to 3.43%.
Justine Leigh-Bell will lead AFII's strategic direction and collaborate with asset owners and managers to integrate climate and nature factors into fixed-income portfolio construction.
The path of US interest rates remains in focus following the slower-than-expected US inflation print as traders fully price a Fed cut in July.
Yields across maturities declined by at least three basis points Friday, led by shorter-maturity tenors that are most sensitive to Fed rate changes.
Some yields went to their lowest levels of the past month after data showed a loss of consumer spending momentum, reflecting anxiety about the cost of living and slowing job growth.
The request may reinforce a recent global trend that has seen the likes of India and Brazil lower their exposure to the world's biggest bond market amid growing doubts about the appeal of US assets.
The extra yield investors demand to hold 10-year notes compared with their two-year counterparts hit 73.7 basis points this week, just shy of the 2022 high touched in April.
The rally came as data showed a surge in job-cut announcements by U.S. companies, a jump in claims for unemployment benefits and a slide in job openings.
Bloomberg's dollar gauge rallied Friday morning in New York after Trump announced the post on social media. Short-term Treasury yields fell while those on longer tenors rose.
The unexpected drop in the Conference Board's gauge of consumer sentiment in January to the lowest level in more than a decade fortified the prospect of two Federal Reserve interest-rate cuts this year.
The $69 billion sale of two-year notes was awarded at 3.580%, more than a basis point below its yield at the bidding deadline.
A surge in gauges of US interest-rate volatility was also brief, with investors anticipating the Federal Reserve will leave rates unchanged at their meeting next week, amid signs of resilience in the economy.
The $13 billion auction was awarded at 4.846%, about a basis point lower than its yield in trading just before 1 p.m.
In the U.S. Treasuries market, longer-dated bonds were hit hardest, as 30-year yields climbed 8 basis points to 4.92%.
The positions in 10-year options could move closer to being in the money by the end of this week, with an array of labor-market releases ahead, culminating in Friday's government employment figures for December.
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