- Treasury yields climbed Thursday ahead of the 30-year bond auction. The 10-year yield rose 4 basis points to 5.322%, the 30-year rose over 4 basis points to 5.705%, and the 2-year rose nearly 3 basis points to 4.793%.
- Fed Governor Christopher Waller said more hikes are needed to bring inflation down after around five-and-a-half years above the 2% target, but said they do not need to come at consecutive meetings.
- Fed minutes showed officials expect another rate increase before year-end. Investors expect the Fed to hold at the Oct. 28 meeting and hike on Dec. 9.
- The Treasury sold $39 billion of 10-year notes with global central banks taking over 80%, above the 72.4% average, and investors await $22 billion of 30-year bonds Thursday as a barometer of demand amid deficit angst.
Quotes
“The hikes do not need to come at consecutive meetings”
“But they should be in place in an acceptable period of time.”
“The 10-year auction has set the tone for the Treasury market – at least for the moment”
“the next barometer of demand for US debt in an environment of global deficit angst”