The closely watched US treasury bond auction overnight was soft, but enough to temporarily ease investors’ worry of an avalanche collapse in demand. USD 38B in 10 year treasuries were sold, with bid-to-cover ratio of 2.38, just slightly below one-year average of 2.42. Focus will now turn to 30-year auction today.
10-year yield closed down -0.026 at 1.520, after hitting as low at 1.506. TNX would likely settle in range of 1.4/1.6, with S&P dividend at around 1.5 in the middle. Such developments should provide a floor for overall market sentiments.
