Treasury Traders Beware Auctions in March as Demand Litmus Test
- U.S. to sell three-, 10-, 30-year debt over next three days
- Wednesday’s inflation numbers are also a potential catalyst
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Treasuries traders are awaiting three U.S. debt auctions totaling $120 billion in coming days that have the potential to trigger another round of bond selling if demand falters, with reverberations likely felt across the investment universe.
Treasury yields fell across the curve on Tuesday ahead of a sale of $58 billion of three-year notes. The U.S. Treasury will offer $38 billion of 10-year securities the following day and $24 billion of 30-year bonds on Thursday. A further possible catalyst looms on Wednesday in the form of inflation numbers for February, at a time expectations for rising prices have climbed to the highest level since 2014.