NEW YORK (Reuters) – U.S. Treasuries, the bedrock of the worldwide monetary system, had been hit by recent promoting stress earlier Wednesday, in an indication that buyers had been dumping their most secure property after the U.S. roiled markets by introducing sweeping commerce tariffs.
MARKET REACTION:
TREASURIES: U.S. Treasury benchmark yields declined after a authorities public sale of $39 billion 10-year notes on Wednesday, suggesting good demand. The public sale got here amid a bond market rout that was sparked by the tariffs and prompted compelled promoting and a splash for money.
COMMENTS:
JAMIE COX MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND VA
“This was an A+ public sale right now that ought to sideline the considerations of systemic danger within the system.”
JEFFREY PALMA, HEAD OF MULTI-ASSET SOLUTIONS AND MACRO RESEARCH, COHEN & STEERS, NEW YORK
“The ten-year Treasury public sale went higher than anticipated definitely in opposition to a backdrop the place the bond market had been buying and selling very weakly over the course of the final week. That sturdy consequence at the least within the quick run is a optimistic for sentiment. The longer-term questions nonetheless stay across the impression from tariffs and so forth on progress. However at the least for the quick run it’s a little bit of welcome excellent news in opposition to what has been a troublesome backdrop.”
VAIL HARTMAN, ANALYST ON U.S. RATES STRATEGY TEAM, BMO CAPITAL MARKETS
“At the moment’s 10-year public sale was very sturdy… Earlier than the public sale, 10-year notes had been underneath stress with yields simply off the session peak of 4.51% and charges headed into 1pm EST roughly 17 bp increased on the day. Because the outcomes, Treasuries have rallied within the follow-through.”
(This story has been refiled so as to add the lacking phrase ‘selloff’ within the headline)
(Compiled by the World Finance & Markets Breaking Information crew; Modifying by Lananh Nguyen.)