Treasury Action: supply is helping push up bond yields today
Treasury Action: supply is helping push up bond yields today, along with a solid risk-on trade. The Treasury is kicking off its $78 B refunding with the $34 B 3-year auction. Concurrently, there's been a flood of corporate issuance given the improved market conditions and as many companies exit from earnings blackouts. BMW US Capital has a big 5-part offering, including 2-year fixed/FRN, a 3-year fixed/FRN, and a 10-year. Berkshire Hathaway Finance is selling 30-year debt. BNP Paribas is selling 10-year notes. Well Fargo has a 5-year. There is an $800 M 10- and 30-year from Oncor Electric Delivery. Western Gas Partners has a $750 M 10- and 30-year deal. Commonwealth Edison is offering $550 M in 10s. Hyatt is selling $400 M in 10s. Ralph Lauren is slated for a $400 M 7-year. Meanwhile, spreads are tightening.