Treasury Sells Near $300 Billion in Notes/Bonds and Rates Fall

It is most incredible that in one of the largest weeks for sales of treasury securities in memory that the 10 year treasury is falling in yield.

The treasury is selling near $300 billion in securities this week and it is almost inconceivable that interest rates are falling.  Are there that many people (or governments)  licking their chops to take down a 2 of 3% yield?  I guess there is demand–and we need to see where this is all coming from–but all  the research takes a bunch of time which we don’t have right now.

The 10 year has been as low as 2.79% today and we will have to see if rates get driven a bit higher for the close to complete another day of rates in the 2.80%’s.

Very strange–very confusing.

4 thoughts on “Treasury Sells Near $300 Billion in Notes/Bonds and Rates Fall”

  1. DTYS is a reverse exchange-traded note which rises when the 10-year US Treasury note falls. Some traders use it to hedge a rising rate environment. But… DTYS lost 3.72% in today’s trading, and is down 5.34% in the past week. Yikes! So much for that “rising rate environment”.

    1. Hi Artemisa–yes I think the better choice for hedging on the short side is TBF—it is a 1x and has much less volatility. But yes YIKES.

  2. Dumbfounded…that’s the word?

    Seems like many want to blame Facebook for everything wrong in the markets, no wait – it’s a trade war, no wait – it’s the Russians, no wait – uggh.

    Anyone else exhausted with this?

    1. GW–yes it is exhausting trying to invest in this craziness. I simply am trying to not react to most of the ‘news’–the vast majority is not worthy of reaction.

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