Treasuries Show Mixed Response as Bond Market Sees New Wave of Sales

The US Treasury market displayed a mixed reaction as it braced for a significant seven-year note auction and a robust lineup of corporate bonds, signaling a busy period for Wall Street with issuers rushing to secure funds before forthcoming economic updates. Ahead of a $42 billion seven-year Treasury auction, the market also anticipated new offerings from eight companies aiming for US investment-grade bond sales on Tuesday, hinting at a bustling day following a record-setting debt issuance spree in February.

Investors are navigating through a landscape marked by heightened rates and shifting expectations around the Federal Reserve’s interest rate policies, amidst a deluge of corporate bond offerings providing attractive alternatives for yield-seekers. Inflation data, expected on Thursday, may reveal an uptick for January, stirring the market further.

Key market movements include:

  • Treasury 10-year yields steadied at 4.29%.
  • The S&P 500 saw fluctuations around the 5,070 mark.
  • Nvidia Corp paused its recent rally, while Macy’s Inc experienced a surge amid store closure plans to ward off acquisition attempts.
  • Bitcoin climbed past $57,000, reaching heights not seen since late 2021.

Corporate Developments:

  • Norwegian Cruise Line (NCHL) projected a buoyant financial outlook for 2024, surpassing analyst expectations.
  • Lowe’s (LOW) forecasted a continued downturn in sales, attributing it to cautious consumer spending on home improvements.
  • Viking Therapeutics (VKTX) reported promising mid-stage trial results for its obesity treatment.
  • Zoom Video Communications (ZM) exceeded quarterly sales and profit expectations, alongside announcing a $1.5 billion share buyback program.
  • Workday (WDAY) provided a somewhat subdued subscription revenue outlook for the year.
  • Intuitive Machines (LUNR) faced challenges after a lunar lander mishap, impacting its stock performance.
  • Exxon Mobil (XOM) and Cnooc Ltd are contemplating a strategic move to acquire Hess Corp.’s (HES) stake in a major offshore Guyana oil project, potentially disrupting Chevron Corp.’s (CVX) acquisition plans.

Share This Article

 

About the Author

Treasuries Show Mixed Response as Bond Market Sees New Wave of Sales

Editor Prism MarketView