Treasuries were down today despite the selloff in equities. The two-year finished the day down 3/64, and the ten-year was lower by 2/32. The benchmark curve was flatter by 2.5 basis points on the day, and currently sits at +219 basis points. A basis point represents .01%.Today’s auction was well received but the market didn’t react to the results as expected. The three-year Treasury came in at a yield of 1.473%, lower than the market rate of 1.476% just before the auction. The bid to cover was 2.66 and the auction was dominated by bids from primary dealers in the US, all considered to be good signs. However, supply fears took over as the day wore on. Traders all but ignored today’s activity and turned their attention to the ten- and thirty-year auctions later this week.
Have a great evening.
Cliff J. Reynolds Jr., Junior Analyst
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