20-year U.S. bond auction goes well but there are still concerns 🌎
Thankfully, the 20-year bond auction turned out well (1.2 basis points below expectations, bid multiple 2.59), coupled with Fed Waller (core PCE has fallen to the Fed's 2% target on a 3-month annualized basis) and Friendly comments from Williams that policy rates are "already at or near peaks" kept a lid on yield gains in the afternoon session, however, given that inflation expectations have remained elevated in recent months and amid tensions between the U.S. and China , China's holdings of U.S. debt fell again, falling to the lowest level since 2009. U.S. debt may still be difficult to get out of trouble in the short term.
