Treasury Market Braces For Big Auctions

Yields are pretty steady in this morning’s early trading as credit markets look forward to today’s Treasury auctions. At around noon, the Treasury will be selling $58B Three-Year notes and $38B Ten-Year notes. After that, the Treasury is supposed to publish its Monthly Budget Statement for March and we’re expected to learn that the nation’s budget deficit grew by another $658B last month after February’s shortfall of $310B.

Yields are little changed so far with the Long Bond bringing 2.34%, the Ten-Year near 1.67%, and the Two-Year at 16 basis points. Crude oil has firmed up slightly to $60 while gold is little changed at $1,743. Equity futures look slightly weaker.