A US Treasury payment check.Douglas Sacha/Getty Images
A recent string of Treasury auctions has suffered from weak investor demand.
Strategists at TD Securities raised the question of whether it’s a “canary in the coal mine.”
But Ed Yardeni thinks yields are already at the right levels to start bringing back demand.
A string of recent Treasury bond auctions saw a major slump in investor demand, and that could be a harbinger of a trend that sends yields higher, strategists said.
On Thursday, the US sold $20 billion of 30-year bonds. But dealers had to pick up 18% of the sales, greater than the typical 11% share, as more buyers balked. That followed similarly weak auctions this past week for three-year and 10-year Treasurys.
In a note Thursday, strategists at TD Securities raised the question of whether it’s a “canary in the coal mine.”
“While end-user takedowns at auctions have remained high in recent years, the recent drop in end-user demand is concerning as dealer capacity to backstop…
2023-10-14 15:45:01
Source from finance.yahoo.com
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