U.S. Treasury's 20-Year Bond Auction Might Require Concession
Dow Jones
1 hour ago
0528 GMT - The U.S. Treasury's $13 billion auction of 20-year bonds Tuesday might require some concession amid risks of further selloff in Treasurys, J.P. Morgan strategists say in a note. "Over the near term, we see risks to the long-end yields as skewed bearish," they say. Valuations continue to flag as expensive after controlling for their fundamental drivers, and position indicators have also shifted longer in recent weeks, they say. "Given an unattractive macro backdrop, rich valuations, and unsupportive technicals, we expect tomorrow's [Tuesday's] auction will require more of a concession in order to be digested smoothly," they say. The 20-year Treasury yield rises 6 basis points to 5.426%, according to Tradeweb.
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