US Bond Yields Climb After 30-Year Auction Draws 72% Indirect Bidders

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US Treasury yields rose today after the market digested the results of this week's bond auctions. As of 6:51 p.m. Thailand time, the yield on the 10-year Treasury stood at 5.244%, while the 30-year Treasury yield stood at 5.617%. On Thursday, the US Treasury sold 22 billion dollars of 30-year government bonds, with indirect bidders, including foreign central banks, purchasing more than 72% of the amount offered in the auction, above the average of 68% across the past 10 auctions. On Wednesday, the US Treasury sold 39 billion dollars of 10-year government bonds. Investors are also watching the situation in the Middle East, after US President Donald Trump confirmed that the United States will not attack Iran before the US midterm elections. Meanwhile, Christopher Waller, a member of the Federal Reserve Board of Governors and a permanent voting member of the Fed's monetary policy committee, voiced support for a Fed rate hike, saying the Fed may need to raise interest rates further to bring inflation back to the Fed's 2% target, provided the economic data due out in the coming days continues to come in as expected. Investors are watching next week's releases of the consumer price index and the producer price index, which will indicate the direction of interest rates, ahead of the Fed's monetary policy meeting on October 27-28.

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