Treasuries began the day lower, on strength in equity markets overseas, but rallied off their lows on an improved, but still negative, Non-Manufacturing ISM.
The Treasury announced $70 billion in refunding with 3-, 10- and 30-year notes coming to market Tuesday through Thursday of next week. It’s odd to think of $70 billion as a small refunding, but it is pretty small. The only problem I see facing next week’s auctions is that the “when issued” period for the three year is essentially one day, thanks to the late Thursday announcement and the Labor Day holiday. The normal period for dealers to search for buyers of the Treasuries to be issued is a week. This may be a non-issue for the market, as most are just concentrating on the small size as a positive for Treasuries.
Bonds opened lower again this morning as traders reduced positions ahead of the announcement of the Change in Nonfarm Payrolls and Unemployment Rate for August. NFP improved from a July Revision of -276k to -216k in August and The Unemployment Rate ticked from 9.4% to 9.7%. Bonds have rallied back from the overnight selloff, lead by the short end that is now positive for the day so far.
Cliff J. Reynolds Jr., Investment Analyst
The Treasury announced $70 billion in refunding with 3-, 10- and 30-year notes coming to market Tuesday through Thursday of next week. It’s odd to think of $70 billion as a small refunding, but it is pretty small. The only problem I see facing next week’s auctions is that the “when issued” period for the three year is essentially one day, thanks to the late Thursday announcement and the Labor Day holiday. The normal period for dealers to search for buyers of the Treasuries to be issued is a week. This may be a non-issue for the market, as most are just concentrating on the small size as a positive for Treasuries.
Bonds opened lower again this morning as traders reduced positions ahead of the announcement of the Change in Nonfarm Payrolls and Unemployment Rate for August. NFP improved from a July Revision of -276k to -216k in August and The Unemployment Rate ticked from 9.4% to 9.7%. Bonds have rallied back from the overnight selloff, lead by the short end that is now positive for the day so far.
Cliff J. Reynolds Jr., Investment Analyst
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