US 10-Year Auction High Yield Nears 2%
The United States (US) Treasury’s 10-year auction hit a high yield of 1.92% on Wednesday, up from the 1.904% high in the previous auction, according to today’s treasury trading data.
The bid to cover ratio for the auction was 2.47, below the 2.68 ratio in the previous auction. Dealers represented 58.3% of the bids, with direct bidders at 11.64% and indirect bidders at 30.07%.
For takedown, dealers took 13.74%, with direct bidders at 18.03% and indirects were awarded 68.23%. The risk sentiment improved after media reports cited Russian Foreign Ministry spokeswoman Maria Zakharova as saying that Moscow’s aim is not to occupy Ukraine.
Ukraine’s Deputy Chief of Staff Ihor Zhovkva reportedly responded by saying President Volodymyr Zelensky’s government is willing to discuss adopting neutral status if Russia can address its security concerns.
The meeting between the two countries will, reportedly, be on Thursday in Turkey. READ: 10-Year U.S. Treasury Yield Rises to 1.62%
West Texas Intermediate crude oil plunged 14% to $105.9 a barrel, sharply declining from more than $130 hit earlier this week — the highest level since 2008 — before the US announced a ban on Russian energy products’ imports.
The ban shouldn’t put any excessive strain on the market as “the US has not imposed any secondary sanctions forcing other countries to halt their oil imports from Russia, these quantities,” Commerzbank analyst Carsten Fritsch said on Wednesday.
“Theoretically, the US could even offset the outages from Russia with its production.” The International Energy Agency signalled Tuesday it is willing to recommend a further release of oil from its emergency reserves if this should prove necessary, Fritsch added in the note.
Gold for April delivery sank $35 to $2,008 per ounce after hitting the $2,075 mark on Tuesday, when the UK and European Union also announced plans to reduce their reliance on Russian oil and gas products. #US 10-Year Auction High Yield Nears 2%
