Us stocks knock on the blackboard:
At the end of February, US Treasuries were unprecedentedly worse than expected, leading to a surge in Treasury yields and global stock market turmoil.
The US Treasury will issue 120 billion new bonds this week. Will yields soar again if the auction is not as expected?
Us debt was unprecedentedly unexpectedly unexpectedly sold by Japan.
Back in the old daysUs Treasury bonds are well-deserved, and the market is flocking to them, causing yields to remain historically low for a long time.
However, after the epidemic, the US Treasury issued a lot of bonds and released water, and the market situation changed.The $62 billion auction of 7-year bonds on February 25th this year was the worst in history.A seven-year period to measure the supply and demand of US debtUs debtBid-to-cover ratio hit a new low.
Which meansInvestors have pulled out of the US bond market.The primary dealer who underwrote the US bond issue was forced to bear most of the issue.
According to the news, the US debt collapsed, and the yield on the 10-year Treasury note soared 16 basis points on that day, acting in part as the "last straw to crush the camel".
Source: Ycharts
Even Japan, the largest external "creditor" of the United States, is frantically selling US debt.According to the latest figures from Japan's Ministry of Finance, Japan sold $34 billion of foreign bonds in the two weeks to Feb. 26, most of which were U.S. Treasuries.
The biggest risk of the week: the auction of US debt
What is worrying is thatStarting from Tuesday, the U.S. Treasury will issue $120 billion in new bondsOf which $58 billion are 3-year bonds, $38 billion are 10-year bonds and $24 billion are 30-year bonds.
According to Bloomberg data,The latest 3-year bid-to-cover ratio, which remains at an all-time low, will be released today.
Investors will remain restless until the auction ends this week. People are worriedAuction saleThe performance of the seven-year period of last monthAuction saleJust as bad, or even worse, which will trigger another sell-off.
-Gennadiy Goldberg, interest rate strategist at TD Securities
Investors need to be prepared: will yields repeat the surge seen at the end of February in the event of a bad auction? Will US stocks continue to fluctuate violently?
On the day of the Feb. 25 bond auction, yields soared and the Nasdaq tumbled 3.5%. Today is also an auction of US debt, is it bad luck for US stocks tonight, or is the market worrying too much?
When will the rise in US bond yields end? what do you think? Welcome to leave a message for discussion in the comments area.