Although yields have moved sharply to the downside of late, there still is a watchful eye on the supply of treasuries and the demand for treasuries especially from foreign investors. Concerns that the ever-increasing supply will crowd out other borrowers and lead to higher rates is a concern.
The U.S. Treasury has announced their coupon auctions for next week. They will auction off 3, 10, and 30-year bonds (re-openings for 10 and 30 year issues) that will all settle on December 15.
More specifically, the treasury will auction off:
- $50 billion of three-year notes on Monday, December 11
- $37 billion of 10 year notes (reopening) also on December 11
- $21 billion of 30 year bonds (reopening on Tuesday, December 12
Note that because the FOMC rate decision is on Wednesday, December 13, the treasury is pushing forward the auctions to Monday and Tuesday to avoid the conflict.