Bond Report: Treasury yields stable after two auctions

NEW YORK (MarketWatch) — Treasury yields were higher Thursday ahead of two auctions, $ 35 billion in five-year notes and $ 29 billion in seven-year notes, as the market surrendered some of its gains from the largest one-day rally in three months Wednesday.

The 10-year yield TMUBMUSD10Y, +1.72%  was up 1.5 basis points to 1.741%, according to Tradeweb data. The yield fell to its lowest level since July 2013 during Wednesday’s rally.

The yield on the five-year note TMUBMUSD05Y, +1.82%  was up 3.6 basis points to 1.280%, making it the worst performer on the curve.

The yield on the seven-year TMUBMUSD07Y, +1.90%  note was up 2.6 basis points to 1.556%. The 30-year yield TMUBMUSD30Y, +1.04%  was up 1.8 basis points to 2.317%.

Treasury yields move inversely to prices, rising as yields fall.

The yield on the 10-year German bund was down 0.3 basis point to 0.353% after a gauge of German consumer-price inflation turned negative for the first time since 2009. The bund yield fell to a new all-time low at 0.328% in early trade, then rose off its lows as a rally in Greek debt drew capital away from the bund, said David Ader, head of government bond strategy at CRT Capital Group LLC.

“Bunds actually off a little from highs, though this seems more about Greece spreads moving in from earlier wides,” Ader said.

Here ‘s what bond investors were watching Thursday:

  • A much stronger-than-expected weekly jobless claims report gave U.S. stock futures a boost premarket.
  • The Australian dollar has hit a nearly six-year low against the U.S. dollar as the currencies of commodity exporters continue to crumble.
  • A Treasury Department auction of five-year notes is set for 11:30 a.m., Eastern while an auction of seven-year notes is set for 1 p.m. Eastern.
  • A reading on fourth-quarter gross domestic product growth is expected Friday morning at 8:30 a.m. Eastern. Economists polled by MarketWatch forecast 3.2% growth. – Top Stories

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