Bond Traders Prepare for Week Full of Risk by Dumping Treasuries
- Ten-year yield approaches seven-year high before auctions
- U.S. midterms, $83 billion of coupon sales precede Fed
Photographer: Stan Honda/AFP via Getty Images
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Bond traders see a volatile week taking a toll on U.S. government bonds, and the benchmark rate is already on the verge of a seven-year high.
In an ordinary week, another super-sized round of Treasury note and bond auctions -- this time, a record $83 billion -- and heightened talk of a trade deal with China might weigh on the market. Add in the wildcard of the U.S. midterm elections and turbulence in equities, and the outlook is even muddier. Trades hedging the risk of higher yields over the coming days have piled up, and Barclays Plc is among banks taking refuge in curve steepening positions.