What’s on the economic calendar
I’ve covered the bond market for 15 years and I can’t remember a Treasury auction that’s as highly anticipated as next week’s.
The US is sell $58B in 3-year notes on Tuesday and $38B in 10s on Wednesday. The latter is the one to watch.
Yields tracking higher and the blowout at last week’s 7-year sale have put an extra focus on 10s next week. The market will be very tentative heading into it and I suspect there will be a large concession and a nervous market. It’s easier to find buyers for 10s and rates are high, I expect demand will be good and it will calm nerves, but be ready for anything. Another auction like last week’s would definitely get the Fed’s attention.
Other highlights on the calendar:
Monday starts out very quietly with only wholesale sales on the docket.
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