Treasury yields accelerated their fall on Wednesday following a $41 billion auction for 5-year notes. The 10-year Treasury note yield
fell 3.2 basis points to 1.458%. The 2-year note yield
was down 2.8 basis points to 1.500%, while the 30-year bond rate
slipped 3.9 basis points to 1.928%. Debt prices move in the opposite direction of yields. The auction “stopped through” by 1.1 basis points, a sign of strong appetite for the debt available for sale. A stop-through indicates when the highest yield the Treasury sold in the auction is below the highest yield expected when the auction began – the “when issued” level. Debt sales can influence trading for the outstanding market as investors make room for the fresh supply.
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