Long-term Treasury yields extended declines seen from earlier in the day on Wednesday after a 10-year auction went as expected.What’s happening
The yield on the 2-year Treasury
was little changed at 4.915% versus Tuesday’s 3 p.m. Eastern time closing level.
The yield on the 10-year Treasury
slipped 5.6 basis points to 4.514% from 4.570% Tuesday afternoon.
The yield on the 30-year Treasury
dropped 9.1 basis points to 4.643% from 4.734% late Tuesday.
What’s driving markets The Treasury’s $40 billion auction of 10-year notes, held at 1 p.m. Eastern time, produced what amounted to average demand after factoring in its increased size, according to macro strategist Will Compernolle of FHN Financial in New York. Along with Tuesday’s sale of $48 billion of 3-year notes, which also went as expected, Wednesday’s auction gave hope that buying interest in government debt can continue despite an onslaught of supply.
Meanwhile, U.S. data showed that the level of inventories, or unsold goods, that U.S. wholesalers are keeping on hand fell in September to a 13-month low.