Treasury Auctions Lure Buyers as Fed Rate Cut Wagers Build
- Indirect bidders took record share of 52-week bill offering
- Fed swaps pricing in over 150 basis points of easing in 2024
Buyers piled into the US Treasury’s auctions Tuesday, seeking to lock in higher yields as the market prices in an aggressive path of Federal Reserve interest-rate cuts in 2024.
Indirect bidders, a group that includes foreign central banks, grabbed a record 77.6% of the Treasury’s 52-week bill auction, while the same category took 71.6% of the department’s six-month offering, the third-largest share ever. Meanwhile, a sale of two-year debt priced below its when-issued yield, a sign of greater-than-expected demand.