Treasury 10-year preview: there are worries over a lackluster sale
Treasury 10-year preview: there are worries over a lackluster sale, in part thanks to the crowding effect of the auctions this week, and decent 3-year offering earlier today. Increasing inflation fears may temper demand too, and some may decided to remain sidelined ahead of the FOMC minutes. However, the note has cheapened several basis points today to 1.795%, which would be the highest stop since March's 1.895%, and like the 3-year, that could be supportive. The note is also cheaper on the curve at a 75 bps, the widest in about a month. The note is also on the special end in the repo market at -0.20%. The September reopening stopped at 1.699%, and saw a tepid 2.35 cover (2.57 average) and a 62.1% indirect bid (64.2% average).