Bonds

Truist sold $3.5 billion of bonds in two parts. The longest portion, an 11-year fixed-to-floating rate security, yields 162 basis points above comparable Treasuries.

Stronger demand for auctions and the recent popularity of the 20-year could already be compelling the department to consider increasing the size the bank's strategists say.

Focused on the next six to 12 months, Pimco looks for the bond market's recent gains to be sustained but not extended in a way that would warrant increasing exposure to interest rates.

Yields moved in tandem — rising sharply in the immediate aftermath of the employment data before going on to swoon as investors used the rise in yields to snap up Treasuries.

Treasuries dipped across the curve as investors re-calibrated Federal Reserve rate cut forecasts on strong jobs data. The 10-year yield hit 4% after data showed U.S. companies ramped up hiring in December.

That said, officials "reaffirmed that it would be appropriate for policy to remain at a restrictive stance for some time until inflation was clearly moving down sustainably."

The U.S. may be less rate-sensitive than other countries due to its long-term mortgages but could face tighter credit from hard-hit financial institutions.

Yields dropped across the US curve after data showed job openings fell to the lowest level since March 2021. Concerns about investors being too fast in anticipating policy easing have resurfaced.

A $55 billion auction of five-year bonds saw strong demand, following a soft $54 billion sale of two-year notes. Benchmark 10-year yields dropped to around 4.4%.

Asset managers said in interviews last week that they're comfortable buying Treasuries and other high-quality bonds at levels they finally see as attractive.

The bonds will be backed by rental payments made by Rivian as part of an incentive package to woo the carmaker. Rivian will purchase the bonds as they are issued.

Long-dated Treasury yields had reached the lowest levels in more than a month just a day earlier, attributed to investors and traders positioning for the end of the Fed's historically aggressive tightening cycle.

Of the 22 sales analyzed, all of 30-year bonds, subsequent moves in stocks were bigger than for monthly payrolls data – which traders typically sweat over to assess the health of the economy and Federal Reserve policy.

The Wall Street bank recently shifted its bond recommendation to neutral from underweight — for the first time since June 2020 — though has so far stopped short of an overweight call.

On Nov. 7, voters will consider a whopping $2.8 billion bond package, including $94 million for a new 8,000-seat venue that could be the costliest in Texas history.

At HSBC Holdings Plc, Steve Major says he was "wrong" to assume the U.S. government's growing supply of bonds didn't matter, and Morgan Stanley finally joined Bank of America and moved to a neutral position on Treasuries.

While the selloff abated on Wednesday, traders are on high alert for a resurgence in volatility — especially if U.S. non-farm payrolls data on Friday come in stronger than expected.

After the salvo of central bank decisions last week, traders are increasingly concerned that rising oil prices risk fanning inflation, which will make it difficult for policymakers to reduce rates anytime soon.

Bond traders are bracing for Treasury yields to keep pushing higher after the Fed signaled it's likely to hold interest rates at lofty levels well into next year.

Yields on longer-dated debt are so high that even if the Fed continues hiking for longer investors still feel they'll be compensated.