T-Bonds: 10-year bonds sold at auction at 5.3 per cent, the highest yield since November 2000

(Il Sole 24 Ore Radiocor) - The US Treasury auctioned off ten-year bonds worth $39 billion. According to BMO, the auction was “solid”, with above-average bids from non-intermediary investors. Indirect bidders, including central banks from around the world, were awarded 80.3 per cent of the bonds, a figure higher than the average of 72.4 per cent recorded in the last 10 auctions. Direct bidders purchased 17.1 per cent, slightly below the average of 18.3 per cent. Intermediaries, on the other hand, purchased only 2.5 per cent of the bonds on offer, well below the average of 9.4 per cent. Nevertheless, the auction yield was the highest since November 2000, standing at 5.3 per cent – a figure that was, however, lower than market participants’ expectations prior to the auction. Yields are falling from their session highs. Yields, which rise when bond prices fall, had climbed sharply overnight at the start of the US trading session, but had already given back most of those gains due to the fall in oil prices.

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