US bond auction fails miserably, yields climb👀
As a final blow (yesterday), the $52 billion 5-year bond auction produced extremely poor results, with a tail of 1.9 basis points and a bid-to-cover ratio of 2.36 times, the weakest level since September 2022, with overall auction data It's bad, traders account for 19.4% of overall supply, the highest level since September 2022, indirect bids are 2 sigma below average, lack of demand for bonds pushes yields up another 2 basis points, and the yield curve closed higher yesterday 10-15 basis points, and affected the stock market to weaken in the afternoon session; investors will focus on PCE data today (expected to increase by 4% month-on-month, core month-on-month growth of 2.5%), which is the next challenge that the market needs to overcome.