The Treasury plans to sell nearly $120 billion in notes and bonds this week after a weak September five-year auction drew low demand and priced more than three basis points above the market yield. Three-, 10- and 30-year yields have risen about 35 to 50 basis points since their last auctions.
The Treasury plans to sell $58 billion of three-year notes on Tuesday, $39 billion of 10-year notes on Wednesday and $22 billion of 30-year bonds on Thursday. The sales are drawing increased attention after weak September auctions, especially the five-year sale on September 23.
Demand at the $70 billion five-year auction was the weakest in nine years by the bid-to-cover ratio. Treasury sold the notes at 5.033%, more than three basis points above the market yield at the bidding deadline; it was the largest auction “tail” since June 2022.
Three- and 10-year yields are up about 50 basis points from their last auctions a month ago, at around 4.96% and 5.32%, respectively. The 30-year yield is up about 35 basis points at 5.65%. The article says high yields could attract solid demand, while noting that volatility and uncertainty could still affect the sales.
