(Bloomberg) — US Treasuries fell as demand for haven assets waned globally, with the rise in yields helping smooth a $58 billion auction of three-year notes in afternoon trade.
Yields jumped at least nine basis points across the curve, with the two-year yield at one stage rising above 4%. Investor demand for the new three-year notes at 1 p.m. New York time was solid, with the rate on bonds with a similar maturity above 3.8% after sliding to the lowest in more than a year on Monday.
“It was a decent auction and the market consolidation off the yield lows since yesterday has helped,” said Gregory Faranello, head of US rates trading and strategy for AmeriVet Securities.
It’s a rapid turnaround in sentiment. Signs of slowing growth, coupled with a violent selloff in risk assets had spurred speculation the Federal Reserve could cut interest rates aggressively to aid the world’s largest economy. The two-year yield, which at…
