U.S. Treasurys Attract Reasonable Demand as Inflation View Eases

The U.S. Treasury Department’s sale of $59 billion in notes and bonds this week attracted the most demand since June as inflation expectations tumbled and investors sought a refuge amid sagging global growth.

The bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, was 3.04 for the offerings of three-, 10- and 30-year securities, the highest level on the series in six months, according to Treasury data compiled by Bloomberg. The $13 billion long-bond sale today drew the lowest yield since November 2012 as crude oil fell below $60 a barrel for the first time in five years.

“The long bond is all about inflation and the curve,” said Adrian Miller, director of fixed-income strategies at GMP Securities LLC in New York. “There is no near- to intermediate-term concern about inflation because of the weakness of the commodity complex.”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.