The U.S.
The move is likely to ease fears that an earlier-than-expected increase in longer-dated debt auctions could add pressure to yields already trading near multi-year highs.Yields have climbed recently as a renewed spike in oil prices reignited inflation concerns, while confusion over Federal Reserve policy added further upward pressure.
Worries that Treasury could boost issuance of longer-dated debt had compounded the move.
There were at least some investors who were looking for a change in guidance this time around, which I think should help the Treasury market breathe some relief, said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities.The Treasury's announcement confirms analysts' expectations that auction sizes won't be increased until next year.
The Treasury said it intends to sell $125 billion next week as part of its quarterly refunding, which will include $58 billion in 3-year notes, $42 billion in 10-year notes and $25 billion in 30-year bonds.It expects to keep current benchmark bill auction sizes unchanged in the coming weeks, while potentially issuing a short-dated cash management bill to address funding needs around the end of August.
