Treasury bonds that mature in 20 years will be auctioned off on Wednesday–an event that could spook the stock market if it goes too badly.
There’s a concern that the auction might not generate strong demand. That was the case with the last auction of a long-term bond, the 30-year, last week. Recent auctions for the 10-year and three-year Treasuries were also weak. “We see bearish risks further out the curve,“ wrote Jay Barry, co-head of U.S. interest rate strategy at JPMorgan last week. The “20-year auctions have had a result similar to the 30-year auction result in eight of the last 12 instances, albeit with” slightly better uptick.
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Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »