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Investors snapped up the sale of $28bn in 7-year Treasuries on Wednesday, rounding off a week of strong demand at US government debt auctions as expectations for three interest-rate raises this year start to wane.

Sales of 2-year and 5-year debt on Monday and Tuesday also drew robust investor interest, especially outside the primary dealers who are responsible for underwriting the US government’s debt and are required to bid on a pro-rate share of the auction.

So-called “indirect bids” that circumvent the primary dealers received 71.1 per cent of the 7-year auction, compared to an average of 65.7 over past auctions, according to analysts at BMO Capital Markets.

It comes as expectations for higher interest rates have shifted lower, with the market-implied probability of the Federal Reserve fulfilling its prediction of three rate increases this year falling to just above 50 per cent, from near 60 per cent before its meeting earlier this month.

The yield on the 7-year Treasury has fallen from its peak of 2.43 percent this month to 2.21 per cent on Tuesday, down 3 basis points for the day.

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