MFS Government Securities Fund
Why Are Market Participants Concerned about December 2015?
The addition of “at its next meeting” in the FOMC’s October statement has led market participants to believe that a rate hike may be effected in its December meeting.
Are More Rate Hikes on the Way?
The Federal Open Market Committee seems quite certain that the pace of future rate hikes will be gradual.
Last Week’s 13-Week Treasury Bill Auction: Focus on Direct Bidders
The US Treasury Department auctioned 13-week Treasury bills (or T-bills) worth $28 billion on May 2.
Overall Demand Barely Moved for 2-Year Treasury Note Auction
The US Treasury holds monthly auctions for the two-year Treasury note.
Fundamental Market Demand Rose for the 26-Week T-Bills Auction
The U.S. Department of the Treasury held the weekly auction for 26-week Treasury bills, or T-bills, on April 18. T-bills worth $24 billion were on offer.
Indirect Bidders Participated in the 3-Year T-Notes Auction
The fundamental market demand for three-year T-notes rose in the April auction. Total competitive bids were 67.4% in April—compared to 55.3% in March.
Direct Bidders Lose Interest in 3-Year Treasury Notes Auction
The US Treasury holds monthly auctions of three-year Treasury notes (or T-notes). The yield on three-year T-notes is related to movements in the federal funds rate.
Bid-to-Cover Ratio Fell for 26-Week Treasury Bill Auction
The U.S. Department of the Treasury held the weekly 26-week Treasury bill auction on February 16, 2016. T-bills totaling $30 billion were on offer.
A Refresher on US Treasuries in 2015
Geopolitical concerns regarding Greece, the Middle East, and China led investors to the safety of US Treasuries at different points in time in 2015.
4-Week Treasury Bills Auction: Borrowing Quantum Highest in 2015
The U.S. Department of the Treasury conducted its weekly auction for four-week Treasury bills on November 17, 2015. The issuance was $55 billion, which was $3 billion higher than in the previous week.
YTD High Yield for the Two-Year Treasury Note Auction
Demand for the two-year Treasury note was higher in September’s auction. The bid-to-cover ratio rose by 3.5% month-over-month to 3.27x in September’s auction.
Treasury Yields Fell as the Interest Rates Stayed the Same
Treasury yields fell across the yield curve for the week ending September 18, 2015. The demand for safe-haven assets rose amid global uncertainty.
Safe-Haven Demand Fell amid a Heavy Supply of Treasuries
Last week, the supply of Treasury securities rose due to the large issuance of high-grade bonds and China dumping US Treasuries.
How Does the Treasuries Yield Curve Look over Time?
Fixed income market participants have been selling short-maturity Treasuries in anticipation of a rate hike by the Federal Reserve. The FOMC convenes on September 16 and 17 to decide the course of monetary policy.
Market Demand Rises for 26-week Treasury Bills on August 31
The US Treasury held the weekly 26-week Treasury bills auction on August 31. After a fall in demand the previous week, the fundamental market demand rose.
Overall Demand Rises for 3-Year Treasury Notes
The US Treasury holds monthly auctions of three-year Treasury notes, or T-notes. The auction was held on August 11. The auction size was set at $24 billion.
Treasury Yields Rise as the Producer Price Index Inflation Rises
US Treasury yields rose across the yield curve for the week ending August 14 due to a rise in the PPI. However, the rise in the yields was restricted to single digits.
Indirect Bidders Drive Down Demand for 26-Week Treasury Bills
The US Department of the Treasury held the weekly 26-week Treasury bills (or T-bills) auction on August 3.