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.
