A growing belief that interest rates will soon begin to fall in America led to a large two-year US bond holding of $69 billion. dollars, demand, reports Bloomberg.
Of the three main categories of participants in the monthly auction, two representing investors accounted for 91 percent of the debt sold on Tuesday. This is the highest percentage since 2003 when comparable data can be found. Initial sellers covered just 9 percent of bids, a record low.
Two-year U.S. Treasuries traded on Tuesday yielded 4.434 percent, more than 2 basis points lower than in pre-auction trade. It is the lowest since the January auction, during which 60 billion worth of securities were sold. dollars.
As the evening approached, the yield on bonds of the mentioned duration had fallen by 106 percentage points to 4.394 percent.
The market currently sees a 96 percent chance that the Fed will cut interest rates in September. It was at 92 percent on Monday, down from around 66 percent a month ago.
The latest Reuters poll showed that most economists expect interest rates to be cut twice this year in the US, in September and December.
