Following an auction of $13 billion of 30-year bonds that drew a yield of 2.917%, Treasuries remained lower than the predicted forecast of 2.889%, according to a Bloomberg News survey of six of the Federal Reserve‘s 21 primary dealers.
The bid-to-cover ratio, which gauges demand by comparing total bids to the amount of securities offered, was 2.5, compared to an average 2.61 at the past 10 scales.
“It was a good set of data,” said Tom Porcelli, chief U.S. economist in New York at Royal Bank of Canada’s RBC Capital Markets unit, one of 21 primary dealers that trade with the Federal Reserve. “It appears the labor market got a little bit of a boost in November. Combine that with a better sales outcome, and the Treasury market reaction is appropriate.”
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