10-Year U.S Treasury Yield Climbs After Auction Results
The yield on the US 10-year Treasury note rose to 3.99% on Thursday, marking its first increase of the week, as traders focused on the upcoming US consumer price index (CPI) report due Friday and auction.
The Treasury Department on Thursday announced the details of this month’s auctions of two-year, five-year and seven-year notes. The Treasury revealed plans to sell $69 billion worth of two-year notes, $70 billion worth of five-year notes and $44 billion worth of seven-year notes.
The results of both the two-year and five-year note auctions are due to be announced next Monday, while the results of seven-year note auction are due to be announced next Tuesday.
Last month, the Treasury also sold $69 billion worth of two-year notes, $70 billion worth of five-year notes and $44 billion worth of seven-year notes, with all three auctions attracting below average demand.
The Treasury announced the results of this month’s auction of $13 billion worth of twenty-year bonds on Wednesday, revealing the sale attracted above average demand.
Despite the ongoing government shutdown, the CPI report is still expected to be released on Friday. Investors anticipate that headline inflation accelerated for a second straight month in September, reaching its highest level since May 2024.
However, both annual core inflation and monthly readings are projected to remain steady, suggesting that tariff-related price pressures remain contained.
US consumer inflation has seen its decline toward the Fed’s 2% target stall for more than a year now, with headline CPI readings stuck between the 2.3% and 3.0% y/y range for that period.
Markets anticipate CPI data not to deter the Federal Reserve from cutting rates, even without supporting data on nonfarm payrolls.
The dollar is trading quietly in mostly narrow ranges against the most of the G10 currencies. The key development has been the escalation of pressure on Russia from a new round of sanctions by the US and EU.
The US sanctioning of two of Russia’s largest oil companies will disrupt Chinese and Indian buyers who may fear being sanctioned themselves if they continue buying Russian oil after a few weeks’ grace period. Access Holdings Slips as Market Awaits Earnings
