ANL 34.01 Decreased By ▼ -0.51 (-1.48%)
ASC 15.08 Decreased By ▼ -0.08 (-0.53%)
ASL 24.50 Decreased By ▼ -0.33 (-1.33%)
AVN 93.80 Decreased By ▼ -1.20 (-1.26%)
BOP 7.85 Decreased By ▼ -0.02 (-0.25%)
BYCO 10.13 Decreased By ▼ -0.18 (-1.75%)
DGKC 126.25 Decreased By ▼ -0.35 (-0.28%)
EPCL 57.00 Decreased By ▼ -0.16 (-0.28%)
FCCL 24.43 Decreased By ▼ -0.07 (-0.29%)
FFBL 28.00 Increased By ▲ 0.04 (0.14%)
FFL 16.54 Increased By ▲ 0.50 (3.12%)
HASCOL 9.93 Decreased By ▼ -0.09 (-0.9%)
HUBC 79.65 Decreased By ▼ -0.35 (-0.44%)
HUMNL 6.65 Increased By ▲ 0.20 (3.1%)
JSCL 20.87 Increased By ▲ 0.46 (2.25%)
KAPCO 40.15 Decreased By ▼ -0.79 (-1.93%)
KEL 3.88 Increased By ▲ 0.01 (0.26%)
LOTCHEM 16.40 Decreased By ▼ -0.84 (-4.87%)
MLCF 47.13 Increased By ▲ 0.22 (0.47%)
PAEL 36.00 Decreased By ▼ -0.17 (-0.47%)
PIBTL 10.45 Decreased By ▼ -0.04 (-0.38%)
POWER 9.30 Decreased By ▼ -0.05 (-0.53%)
PPL 85.00 Decreased By ▼ -0.74 (-0.86%)
PRL 25.34 Decreased By ▼ -0.37 (-1.44%)
PTC 9.70 Increased By ▲ 0.25 (2.65%)
SILK 1.22 Increased By ▲ 0.05 (4.27%)
SNGP 38.82 Decreased By ▼ -0.54 (-1.37%)
TRG 167.22 Increased By ▲ 7.61 (4.77%)
UNITY 30.55 Decreased By ▼ -0.20 (-0.65%)
WTL 1.52 Increased By ▲ 0.09 (6.29%)
BR100 4,850 Decreased By ▼ -1.84 (-0.04%)
BR30 25,774 Increased By ▲ 102.26 (0.4%)
KSE100 45,108 Decreased By ▼ -78.3 (-0.17%)
KSE30 18,481 Decreased By ▼ -3.81 (-0.02%)

Coronavirus
VERY HIGH
Pakistan Deaths
15,501
5824hr
Pakistan Cases
725,602
458424hr
Sindh
269,126
Punjab
250,459
Balochistan
20,321
Islamabad
66,380
KPK
99,595

NEW YORK: Treasury yields were lower on Tuesday morning, with big moves in the two-, five- and seven-year note yields ahead of the auctions of all three maturities this week.

The US government will sell $40 billion of two-year notes later on Tuesday. Although increased supply would theoretically drive prices lower, the two-year yield, which moves inversely to price, was down 2.7 basis points in mid-morning trade.

"Because yields have backed up so much, things look much more attractive now, even with the added supply," said Mary Ann Hurley, vice president, fixed income trading at D.A. Davidson.

Tuesday's move is a counter-trend in the broader move higher in yields in the last month. The two-year yield is a proxy for market expectations of interest rate hikes, which the Federal Reserve has indicated will be on hold for the near term in the wake of financial market volatility and softer economic data. But as the economic outlook has improved, yields have risen back from late-March lows.

Government bond auction sizes have ballooned since the start of 2018 as the United States takes on debt to pay for President Donald Trump's tax cuts. Treasury issuance is likely to remain high, given the large budget deficit, but for now, auctions are at or slightly below the record sizes set in 2018.

New debt supply was the primary mover of markets on Tuesday morning, said Hurley. There is little US economic data scheduled for release until first-quarter gross domestic product is reported on Friday. Investors also had little conviction as Australia, Hong Kong and much of Europe returned to trading desks after a holiday on Monday.

"Lots supply and low trading volume," characterized trading on Tuesday, said Hurley.

There was also a bid in five-year notes, which saw yields fall 3 basis points to 2.358 percent, and in seven-year notes, which also saw yields fall 3 basis points, last at 2.457 percent. The Treasury Department will auction off $41 billion five-year notes on Wednesday and $32 billion seven-year notes on Thursday.

More than a quarter of S&P 500 companies are scheduled to report earnings this week, including tech stocks Facebook Inc and Microsoft Corp. Thus far, corporate earnings have largely beat analyst expectations, which were low after interest-rate and recession risks roiled financial markets in January.

But stock indexes remained below record levels, which alongside increased demand for Treasury bonds, suggests investors were still waiting to see if results from major companies would ease concerns about an earnings recession.

Copyright Reuters, 2019