Treasurys

It was propelled in part by supply pressure, as demand was soft for the first of three Treasury auctions this week and as a slew of high-grade corporate bond offerings competed for investor cash.

Uncompleted trades involving the 20-year Treasury exceeded $21 billion in the week ended December 25 ... the second-highest amount in the history of the tenor.

The overall price drop was offset by interest payments, allowing a broad gauge of the Treasury market to post a gain of about 0.7% this year through Dec. 30.

Treasury was notified on Dec. 8 by a third-party software provider that a hacker had gained access "to a key used by the vendor to secure a cloud-based service."

Treasury yields remain near the upper end of their trading range for this year given the limited outlook for further interest rate cuts, along with concerns that rates will remain elevated because of the potentially inflationary policies being proposed by President-elect Donald Trump.

Investors have been demanding additional yield compensation, or term premium, for long-term Treasuries amid signs of sticky inflation.

The rally left yields lower by at least three basis points, with short maturities — more sensitive to Fed policy changes — falling the most.

The market retraced an opening selloff, with longer-dated benchmarks outperforming the front end.

The economist, who runs Roubini Macro Associates, is positioning for a curve steepener, a popular Treasuries trade where the gap between long- and short-dated yields widens.

Tuesday's declines lifted yields by one to four basis points across maturities after Trump said he'd impose additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada.