- Highest yield of the cycle (beats Nov 2022 at 4.08%)
- Bit to cover at 2.42 vs 2.43 prior
The 1.4 basis point tail is not a good sign for the fixed income market. I thought the 4% handle might pull in bids but the history of tails at new issues was too much to overcome.
The follow-through so far has been minimal but it bears watching carefully.
30s one min chart
“The post-CPI kneejerk rally in Treasuries was largely faded with rates little changed on the day in the run-up to 1pm. Since the result, we’ve seen a modest selloff in the long end,” writes BMO.