This afternoon, the cabinet will end the auction debt within two years. It is an interesting preparation since debts are more sensitive to the expectations of reducing the Federal Reserve, and these have moved a lot during the past few days.
Last Friday, Federal Reserve Chairman Jerome Powell reinforced the expectations of reducing interest rates in September, and with the high price of treasury bonds for two years. The return moves in the opposite direction of prices, thus the return has decreased for two years.
On this background, the cabinet is set at an auction of $ 69 billion in two years. In July, investors bought a two-year-old note at a high rate of 3.920 %-market trading is much lower than this level.
https://images.barrons.com/im-783602/social
Source link