Noticias FX

155.24, Then Straight Back. The Yen Is Trading the Ten-Year — and Treasury Sells 20-Year Paper Into It at 17:00.

London ran USD/JPY through 155.00 to 155.24 on a ten-year at 5.0390% and handed all of it back when the yield gave up three basis points — the second failure at that figure in fourteen hours, and no link in either chain was Japanese. The ten-year went from "highest since October 2023" to "highest since July 2007" across about three basis points. Treasury sells 20-year paper into it at 17:00 UTC, six securities settle today, and the 20-year settles Friday on Bank of Japan morning.

The 3-Year Auction Went Fine. It Cleared 18 Basis Points Higher Than the Last One.

The US sold $58bn of 3-year notes at 4.474% with a 0.1bp stop-through, bid-to-cover 2.72 against a 2.62 average.

Demand was normal — at 18bp more than the last auction, with the 10-year through 4.8%. Front-end yields rose and the dollar still could not reclaim 155 against the yen. What that says about any rate-differential signal, and the week's schedule in UTC.