US Treasurys waver amid equities rally, after auction
U.S. sovereign bond prices wavered Tuesday, as equities rose and investors digested data sets and lackluster demand at a Treasury auction.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose to 1.752 percent, while the yield on the 30-year Treasury bond was about flat at 2.607 percent.
The Treasury Department on Tuesday sold $24 billion in three-year notes at a high yield of 0.875 percent. The bid-to-cover ratio, an indicator of demand, was 2.93, the highest since January.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.37% | +0.009 |
| US3M | U.S. 3 Month Treasury | 5.393% | -0.003 |
| US6M | U.S. 6 Month Treasury | 5.389% | -0.001 |
| US1Y | U.S. 1 Year Treasury | 5.209% | +0.006 |
| US2Y | U.S. 2 Year Treasury | 4.95% | +0.017 |
| US10Y | U.S. 10 Year Treasury | 4.491% | +0.016 |
| US30Y | U.S. 30 Year Treasury | 4.59% | +0.01 |
Indirect bidders, which include major central banks, were awarded 61.5 percent. Direct bidders, which include domestic money managers, bought 10.2 percent.
Treasury prices broadly fell ahead of the sale.
"Bottom line, while I can only guess what the sentiment was of the bidders, it's clear that the market isn't expecting much from the Fed on the hike side," said Peter Boockvar, managing director and chief market analyst at The Lindsey Group.
In oil markets, WTI crude prices settled $1.22, or 2.8 percent, higher at $44.66 a barrel after ending Monday's session at a loss. Brent crude, meanwhile, climbed 4.5 percent to $45.58 per barrel.
Major U.S. stock averages rose more than 1 percent each on Tuesday.
Small business trends were under the microscope as the April NFIB index came in at 93.6, above the March number 92.6.
Investors also digested wholesale data for March that met expectations.
The Jobs Openings and Labor Turnover Survey (JOLTS) for March showed openings came in at 5.18 million.