Monday’s sale of 3-year Treasury notes was met with low demand, with primary dealers taking a larger-than-normal portion of the sale to make up for a lack of enough indirect bidders, according to Tom di Galoma, co-head of global rates trading for BTIG in New York. Two- and 10-year Treasury yields remained higher immediately after the auction results came in. The sale of 3-year notes is set to be followed at 1 p.m. Eastern time on Monday by a second sale of $37 billion in 10-year notes. Due to the lack of major economic data releases on Monday, traders were looking to both auctions to set the tone for the day.
Read the full article here