US issues 10-year notes at 4.177%, surpassing 4.163% in the when-issued market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Source: InvestingliveForex
Auction Performance: The recent bond auction was deemed poor, with a bid/cover ratio of 2.39x, slightly below the average, indicating weaker demand for US bonds.
Trump's Interest Rate Claims: Former President Trump argued that the US should have lower borrowing costs due to strong job numbers, suggesting it could save the country over a trillion dollars annually.
US Deficit Context: Despite Trump's claims, the US annual deficit stands at $1.8 trillion, and even with zero interest rates, the deficit would still be significant at $0.8 trillion.
Market Reactions: The strong non-farm payrolls report has reduced expectations for a Federal Reserve rate cut in the near term, reflecting the bond market's influence on interest rates.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
