(Bloomberg) — US Treasuries are sliding as the turmoil that gripped global markets earlier this week subsides, with investors spurning a sale of 10-year notes offered at lower yields.
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The selloff pushed yields on 10-year Treasuries higher by six basis points on Wednesday to 3.95% as traders unwound wagers on deep interest-rate cuts this year. Investors shunned a $42 billion auction of benchmark 10-year securities, which drew a yield that was well above the pre-sale indicative level.
The auction result is “consistent with our view that we’re due for a continued correction higher in yield in the near-term,” said Zachary Griffiths, head of US investment grade and macro strategy at CreditSights. “The repricing following what was really just a moderately weak payrolls report seems way overdone.”
Weaker-than-expected demand at the sale offered a signal that a recent rally in Treasuries has run its course….
