We have a very interesting day ahead of us in terms of the publication of important data and monetary decisions in the US. In addition to the final PMI data, ADP and JOLTS readings, as well as the key FOMC decision (along with Powell's conference call immediately following it), investors will also learn about the latest announcements regarding US Treasury debt.
The Fed's ongoing economic tightening cycle has increased the cost of servicing the federal government's debt, which, combined with high uncertainty in this sphere (further saturated by the massive financial support of war-stricken Israel and Ukraine), is raising yields on government debt instruments to levels not seen since the 2007-2008 crisis.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe U.S. Treasury has communicated that it will hold a $776 billion debt auction in the last quarter of 2023. The key variables that markets will be watching are the actual size of the auction, as well as the maturity dates.
The fundamental question, however, is what comes next. The Treasury has already announced that it plans to gradually increase the size of auctions in the coming quarters, and its previous quarterly announcements have correlated with the rise in debt securities yields over the past few months.
At the moment, TNOTE remains in the zone of local minima at the level of 106. Today's readings of macro data, the tone of the FOMC decision and details of new Treasury auctions may decide whether the downward trend on this instrument will be maintained, or whether, however, the quotes of debt securities will rebound.
Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
