U.S. Treasurys Little Changed in Asian Trade After Wednesday's Selloff

Dow Jones
Sep 24
 
 

U.S. Treasurys tentatively calmed in Asian trade on Thursday, a day after massive selloffs pushed yields to fresh multiyear highs in U.S. trading hours.

Treasury yields rose 10-15 basis points on Wednesday with the intermediate sector underperforming along the curve. The selloff was initially in line with moves in eurozone government bond yields, but accelerated following a better-than-expected U.S. purchasing managers' data for September.

The 10-year Treasury yield, which hit a 19-year high of 5.14% on Wednesday, last traded up 1 basis point at 5.124%, according to Tradeweb. The 30-year yield, which rose to 5.415% on Wednesday, last traded 1.3 basis points higher at 5.414%.

"Yesterday's superheated U.S. flash PMIs triggered a sharp tightening in financial conditions during the European evening," Mohamad Al-Saraf, senior fixed income and FX analyst at Danske Bank said in a note.

Investors will focus on the Treasury's $44 billion auction of seven-year notes and its $6 billion buyback auction of 20- and 30-year bonds on Thursday.

 
 

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