US 10-year yields down 6 bps ahead of auction
The US was planning to 7-year notes at the top of the hour but delayed the sale until tomorrow because of a technical glitch.
In the big picture, the bond market isn't showing the same kind of optimism that's helped stock markets in the past two weeks.
Yields are down sharply today and are less than 4 bps from the cycle closing low.
It's a tough call about which way markets will swing next. The US economy is doing ok but the longer-term outlook is middling.
Bonds at 1.69% are a relatively good yield compared to near-zero rates in Germany and Japan. Still, it's only 1.69% per year for 10 years when the Fed it battling to bring inflation above 2%.
