Bond Market Update

Treasury Announces Q3 Auction Sizes

• U.S. Treasuries trade on their highs after the U.S. Treasury announced that it will sell $125 bln in 3-, 10-, and 30-yr notes and bonds next week. In addition, the Treasury announced that the sizes of 10-yr note, 20-yr bond, and 30-yr bond auctions will be reduced to levels from June and July after a $3 bln increase in August. The Treasury will not change the sizes of 2-, 3-, 5-, and 7-yr note auctions.
• Yield Check:
  • 2-yr: -2 bps to 4.34%
  • 3-yr: -3 bps to 4.14%
  • 5-yr: -3 bps to 4.01%
  • 10-yr: -3 bps to 4.11%
  • 30-yr: -2 bps to 4.38%