TREASURIES-US yields reverse losses after auction, Fed minutes
WASHINGTON, Oct 8 (Reuters) - U.S. Treasury yields turned positive on Wednesday afternoon, with investors showing tepid demand at an auction of 10-year notes and minutes from last month's central bank meeting holding few surprises.
Amid a government shutdown that has silenced official economic indicators and with baked-in market expectations for successive Federal Reserve rate cuts in the remainder of the year, analysts see little reason for U.S. yields to awaken from their recent range-bound trading pattern.
Wednesday's $39 billion auction of ten-year notes saw declines in the bid-to-cover ratio and purchases by indirect accounts, pointing to less-than-stellar investor appetite.
Meanwhile the minutes from the September meeting of the Federal Open Market Committee showed most favored easing policy again this year.
"It wasn't a weak auction, it was just not great," said Lou Brien of DRW Trading. "I termed it slightly to the poor side."
The longer markets go without the federal government's economic data, the harder it becomes for investors to place bets, he added.
"The further you go without any economic data, the more of a mystery the economy becomes," said Brien.
The yield on the benchmark U.S. 10-year Treasury note US10YT=TWEB was last up 0.6 basis points to 4.133%. The yield on the 30-year bond US30YT=TWEB rose 0.1 basis points to 4.727%.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at a positive 54.5 basis points.
The two-year US2YT=TWEB U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 1.4 basis points to 3.586%.
The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) US5YTIP=TWEB was last at 2.433% after closing at 2.42% on October 7.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.364%, indicating the market sees inflation averaging about 2.4% a year for the next decade.
Related Articles
OpenAI's Dev Day 2025: How ChatGPT's App Ecosystem Is Redefining the Internet
Two years ago, OpenAI's first Dev Day felt like a startup showing off its breakthrough product. ChatGPT had 100 million weekly users and processed 300 million API tokens per minute—numbers that made headlines and seemed impossibly large. Fast-forward to today, and those figures look almost modest. C
Synopsys (SNPS): Strategic Opportunities and Risks Amid 40% Drawdown
Chip giant Synopsys teetering on the edge? The ultimate "pick-and-shovel" supplier in the AI frenzy, but hammered by China's sudden market freeze and export clamps, sending shares crashing 40%! Is that $35 billion Ansys mega-deal a rescue rope or a bigger sinkhole? Dive into the EDA powerhouse's nai-8a7a081ca049441dae56d6b7cc6440c4.jpg)
FOMC October Meeting Minutes: How Should Investors Respond?
In the context of the U.S. government shutdown and a period of limited economic data, the Federal Reserve’s release of its latest monetary policy meeting minutes and officials’ statements on 8 October will be particularly significant.
U.S. Government Shutdown Commentary: Is a Stock Market Crash Imminent? Will Gold Prices Continue to Surge?
TradingKey - On 1 October 2025, the U.S. federal government officially entered a shutdown, impacting various asset classes. This article analyses two key markets most affected—U.S. equities and gold—to help investors identify potential opportunities.
ASML Q2 FY2025 Earnings Review: Strong Growth and High-NA EUV Breakthrough Shadowed by 2026 Uncertainty
ASML Holding N.V. (NASDAQ: ASML) released its Q2 FY2025 earnings on July 16, 2025, exceeding market expectations with robust net sales and net bookings, though the stock fell around 10% due to cautious guidance for 2026 amid geopolitical uncertainties.
