The Globe and Mail reports in its Friday edition that U.S. Treasury yields edged lower on Thursday after comments from the top Treasury official eased concerns of any looming increase in the size of longer-dated debt auctions. A Reuters dispatch to The Globe quotes
Treasury Secretary Scott Bessent saying that a near-term change is not planned given hurdles, including the Federal Reserve's quantitative tightening program.
"It further kicks the can down the road for a higher issuance, maybe the end of this year, beginning of 2026 at the earliest, but we already knew that from the last refunding announcement," said Will Compernolle, macro strategist at FHN Financial in Chicago.
Traders had been expecting Mr. Bessent to issue more longer-dated debt after formerly criticizing the Treasury under his Democratic predecessor, Janet Yellen, for relying heavily on short-term debt issuance. The Treasury saw solid demand for a $9-billion (U.S.) sale of 30-year Treasury inflation-protected securities on Thursday.
The debt sold at a high yield of 2.403 per cent, which was the highest yield in a 30-year TIPS auction since the Treasury reintroduced the security in 2010, according to analysts at BMO Capital Markets.
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