Linea Mercati Interview 8/8/23
August 8, 2023Linea Mercati Interview 8/8/23
August 9, 2023Investors are pricing the end of monetary tightening and locking in high yields, Spartan’s Peter Cardillo says about today’s auction of three-year Treasury notes. Cardillo says demand was fair and would “not likely reverse today’s rally in bonds.” The Treasury auctioned $42 billion in three-year notes to be issued next week. The highest yield awarded was 4.398%. Meanwhile, futures are pricing 86.5% odds of a Fed skip in September, according to the CME’s FedWatch tool. Bond yields are down across maturities, reflecting higher demand. The three-year is at 4.422% and the 10-year benchmark is at 4.026%.