Yahoo Finance Treasury Yields Extend Rebound as US Companies Tap Bond Markets
(Bloomberg) -- Treasury yields retraced a portion of last week’s steep declines amid a deluge of new corporate bonds and anticipation of two auctions during a holiday-shortened week.
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Longer-maturity yields led the move, rising six to eight basis points. The benchmark 10-year note’s climbed as much as seven basis points. Last week it fell more than 21 basis points, reaching the lowest level since March, spurred mainly by benign consumer prices data released Wednesday.
With no major economic data slated, companies needing to sell bonds took the opportunity to do so — with 13 lining up, including Home Depot Inc. with a nine-part offering that includes 10-, 30- and 40-year maturities. Last week was the slowest of the year for new corporate bond sales as borrowers were sidelined mainly by the inflation data and Wednesday’s Federal Reserve statement on interest rates.
While the new corporate bond supply had the potential to spur investors to sell liquid assets to finance their purchases, Treasuries also faced pressure from Wall Street firms that recommended setting short positions after yields tumbled last week.
Banks with recent recommendations to position for higher Treasury yields include Barclays Plc and JPMorgan Chase & Co.
This week also brings two Treasury auctions on a accelerated schedule because US markets will be closed Wednesday for the Juneteenth holiday. The monthly 20-year bond auction, normally on a Wednesday, is slated for Tuesday. An auction of five-year Treasury inflation-protected securities has its normal Thursday slot.
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