Breaking News: Long-dated UST yields are edging higher as President Trump promises a “big league” tax announcement (his words) in a few weeks. If Mr. Trump builds markets up, he must be careful not to disappoint. On the news, the 10-year UST yield surged 1.4 basis points to 2.37%.
Long-term yields are a bit higher ahead of today’s 30-year U.S. government bond auction. Given the strong indirect bidder participation, at yesterday’s 10-year UST note auction, I would expect indirect bidder demand to be somewhat soft.
The pattern typically is; strong indirect bidder participation at the 10-year auction when a new 10-year is issued, which coincides with a fairly soft 30-year auction. On the first re-opening, the situation often reverses. We shall soon see.
About Thomas Byrne
Thomas Byrne has achieved a 26-year career in financial services, 23 of which have been spent in the fixed income market sector. In his role as Director of Fixed Income for Wealth Strategies & Management LLC., Byrne is responsible for providing strategic analysis and portfolio management to private clients and institutions, in addition to offering strategic advisory services to other financial services organizations. Byrne's areas of expertise include trading preferred stock, corporate bonds, mortgage backed securities, government debt, international debt, and convertible bonds. Additionally, Byrne provides analysis, strategy, and commentary within the fixed income market. Prior to joining WS&M, Byrne worked as Director in the Taxable Fixed Income Department of Citigroup, Inc., in addition to predecessor companies in New York, NY.
E-mail: [email protected]