Arabic version: تراجع عوائد الخزانة بعد بيع سندات لأجل 30 عاماً

According to Cnbc, U.S. Treasury yields fell Thursday as traders assessed comments from Federal Reserve Governor Christopher Waller and the Treasury Department’s final bond auction of the week. The benchmark 10-year Treasury yield was down more than 4 basis points at 5.229%, after reaching its highest level since 2002 earlier this week.

The 30-year Treasury bond yield dropped more than 5 basis points to 5.602%, following recent trading around a 24-year high. A basis point equals 0.01%, and bond yields move in the opposite direction of prices.

Waller said additional rate hikes are needed to bring inflation down after it has remained above the central bank’s 2% target for around 5-and-a-half years. But he indicated that increases did not have to occur at consecutive meetings. “The hikes do not need to come at consecutive meetings,” Waller said at a Central Bank of Turkey forum in Istanbul. “But they should be in place in an acceptable period of time.”

His comments initially pushed yields higher, before they retreated after President Donald Trump said the U.S. would not attack Iran until after the November midterm election. Yields also pulled back after the Treasury sold $22 billion of 30-year bonds. Indirect bidders, including central banks, took 72.3% of the offering, above a 10-auction average of 68%. Direct bidders, including institutional investors, bought 20.9%, below their 22% average. The auction yield was 5.618%.

The sale concluded the week’s auctions after the department sold $58 billion in 3-year notes Tuesday and $39 billion in 10-year notes. Peter Boockvar, chief investment officer of One Point BFG Wealth Partners, described Thursday’s auction as “decent” but said it was not as strong as the prior day’s 10-year sale.