U.S. Treasuries Rise

U.S. treasuries rose after a recent auction $35 billion of two-year notes required less yield than expected. Later in the week, auctions are planned for $64 billion worth of five- and seven-year notes. This indicates a general risk-off attitude, and comes at the same time as consumer confidence and home prices have declined. U.S. treasuries continue to enjoy haven demand.

Volume was slightly higher than expected, and indirect bidders (which includes foreign central banks) made up a higher percentage of purchases (34.3 versus 32.1 percent for the past 10 sales). If conditions in Europe were to worsen, demand for U.S. exports is expected to drop, according to The New York Fed’s Dudley.

Source: Bloomberg

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.