10-Year Yields Decline Following Successful Bond Auction

Treasury yields registered a slight decline on Wednesday, after 10-year Treasury auction data suggested there is still sufficient demand, despite fears of growing government debt and an impending rapid increase in interest rates.

On Wednesday, the yield on the 10-year Treasury note dropped by approximately 3 basis points before settling at around 1.51% later in the day. Likewise, the yield on the 30-year Treasury bond also declined, falling by 1 basis point to around 2.24%.

The latest bond auction, which showed that there is still enough demand in the market for $38 billion worth of 10-year Treasuries, eased investor’s fears regarding America’s growing debt burden, which would otherwise impact bond demand and subsequently push yields higher. The 10-year yield at the bond auction came in at 1.523%.

The market’s concern over impending inflation was also curtailed, after the Bureau of Labour Statistics’ latest CPI print showed price pressures remained in line with expectations, increasing by 0.4% in February. However, the upcoming $1.9 trillion stimulus— which was successfully passed by the House— is expected to provide a significant boost to household incomes, and will likely reignite inflation fears further.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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