How does 4.06% for ten years sound?
That’s what markets will be grappling with as we count down to the results of the 10-year sale at the top of the hour. I thought we would see more bids as 10s crossed 4% the the sellers continue to have the upper hand as US economic data beats estimates.
Note that the past three 10-year auctions stopped through by an average of 1.5 bps.
BMO notes that October is seasonally soft
for 10-year offerings – over the last decade, seven auctions tailed and just
three stopped-through.