CaiLian News on November 6 (Editor XiaoXiao) - U.S. Treasury bond prices fell across the board on Wednesday (November 5), as the U.S. Department of Finance suggested that it would increase the scale of long-term bond issuance in the future, while the

Market data shows that U.S. bond yields of various maturities have generally risen by 5-8 basis points overnight. Among them, the 2-year U.S. bond yield rose 5.99 basis points to 3.630%, the 5-year U.S. bond yield rose 7.30 basis points to 3.764%, th

The U.S. Department of the Treasury announced in its quarterly refinancing statement that it expected to maintain the auction size of medium and long-term fixed-rate coupon securities and floating rate notes in the at least next few quarters, which w

However, the Ministry of Finance also added in its latest statement that looking ahead, it has begun to preliminarily consider increasing the auction size of interest-bearing bonds and floating rate bonds, with a focus on assessing long-term demand t

After the U.S. government signaled its intention to expand the auction scale, the price of U.S. bonds fell during the trading day, and the yield rapidly surged.)

Although traders had expected the U.S. Department of the Treasury to start paving the way for increased issuance of long-term bonds at some point in time, given the sustained historical high fiscal deficits that have pushed up the overall debt burden

Previously, US Treasury Secretary Biondi expressed his preference to avoid locking in higher borrowing costs when national debt prices are low for the government - which means a greater reliance on short-term bond financing. Consequently, some Wall S

Wells Fargo strategist Angelo Manolato said, The interest rate market may react to the additional guidance from the Treasury Department on considering increasing the issuance of medium and long-term interest-bearing bonds in the future. This guidance

Jan Nevruzi, an interest rate strategist at Dao Ming Securities, also pointed out when talking about the refinancing announcement that 'the announcement is somewhat hawkish compared to market expectations.'

He said, We don't agree with the claim that they will cut the auction scale, but there were rumors about it earlier... In fact, they have completely reversed their direction and are initially considering increasing the auction scale of future coupon

Economic data further reduces interest rate cut expectations

In addition to the quarterly refinancing statement of the US Department of Finance, a series of better-than-expected US economic data also pressured the US bonds on Wednesday.

The ADP employment report known as the mini-nonfarm released on Wednesday showed that private sector job openings in the U.S. increased by 42,000 in October, which was higher than the 22,000 predicted by economists surveyed by the media. The decline

Due to the government shutdown, the official non-farm employment data from the US Department of Labor has been absent recently, and investors and Federal Reserve policymakers are now relying more on alternative data sources such as ADP.

Florian Ielpo, head of the macro multi-asset team at Lombard Odier Asset Management, said, This employment report should alleviate the Federal Reserve's concerns about deteriorating labor market conditions. He expects U.S. bond yields to linger in th

The Institute for Supply Management (ISM) in the United States reported on the same day that its non-manufacturing purchasing managers index (PMI) rose to 52.4 in October, higher than 50.0 in September and stronger than economists' previous forecast

The above-mentioned strong signs of the U.S. economy have further weakened the market's expectation that the Federal Reserve policymakers will cut interest rates for the third consecutive time at the December meeting. The Federal Reserve Watch Tool a

Matthew Martin, a senior economist at the Oxford Economics Research Institute, pointed out in a report that We believe that the Federal Reserve's two consecutive interest rate cuts have provided sufficient support to the labor market, so we will main

Meanwhile, as the US Supreme Court began hearing a case on the legality of Trump's comprehensive tariff policy on Wednesday, the US debt market also faces the risk of further selling pressure. The tariff policy previously drove a surge in federal gov

The oral argument held by the Supreme Court today reminds us that this issue still exists, and its impact is almost black or white, said Art Hogan, chief market strategist at B. Riley Wealth.

John Brady, the managing director of RJ O'Brien, pointed out that if the tariff policy is overturned, the 10-year and 30-year US bonds will be easily subject to sharp falls. By then, the market will face a far less ideal fiscal deficit situation than