1pm ET
At 1300ET/1800GMT today, the US Treasury will announce the results of the 10 year bond auction...Markets are closely watching such auction results to gauge the demand for US debt and determine the ease/difficulty of the US to satisfy its massive borrowing needs. Should the auction go well, it could allay much of the fear that the US may have problems borrowing and potentially see the USD recover. If the auction goes poorly, the USD would get crushed. The key will be the yield received; if it comes in below current 10-year yields of 2.67%, it's a sign demand is solid (USD positive) as investors are willing to receive less than current 10 year yields. If above, it shows that investors are demanding more, which would be USD negative. Treasury reduced the amount on offer from $20 bio to $16 bio, so the bid-to-cover ratio should be adequate. We will also be looking for the amount of foreign participation.
At 1300ET/1800GMT today, the US Treasury will announce the results of the 10 year bond auction...Markets are closely watching such auction results to gauge the demand for US debt and determine the ease/difficulty of the US to satisfy its massive borrowing needs. Should the auction go well, it could allay much of the fear that the US may have problems borrowing and potentially see the USD recover. If the auction goes poorly, the USD would get crushed. The key will be the yield received; if it comes in below current 10-year yields of 2.67%, it's a sign demand is solid (USD positive) as investors are willing to receive less than current 10 year yields. If above, it shows that investors are demanding more, which would be USD negative. Treasury reduced the amount on offer from $20 bio to $16 bio, so the bid-to-cover ratio should be adequate. We will also be looking for the amount of foreign participation.
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