Wednesday , 6 November 2024
Home Forex US 10-year auction risks a buyers strike ahead of the election
Forex

US 10-year auction risks a buyers strike ahead of the election

We will get US 10-year auction results at the top of the hour. Today’s ISM services number highlights the upside risk for yields as it showed a strong economy (though with lower prices). The market is now leaning heavily towards a January pause from the FOMC.

On the run 10s are trading at 4.345% at the moment and BMO doesn’t think they will get any help from the auction:

The event risk created
by the election has kept investors largely sidelined for the last few weeks,
and even with 10-year rates back above 4.30% this morning, we struggle to
imagine a particularly aggressive bid given the proximity to such a defining
moment for global financial markets. The lackluster demand for Monday’s 3-year
supply is consistent with this observation – and because 10-year auctions tail
roughly three-quarters of the time when the preceding 3-year offering tails by
more than half a basis point, we’ve been left increasingly wary of the need for
a concession this afternoon. We’ll look for a tail at 1pm EST with uncertainty
running high at the current juncture.

This article was written by Adam Button at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

As the later country votes in Indiana come in, they show Trump running stronger

Earlier today, I highlighted that Harris was running better in Sullivan county...

Bitcoin is running higher

The price of Bitcoin is running higher on the early Trump enthusiasm...

Trump trades continue to rally as his odds improve

All the Trump trades have climbed as election results from Georgia and...

US dollar firms across the board as Trump trades climb

I'm not sure what the FX market is trying to tell us...