Treasury yields lower ahead of auction

Despite a 30-year Treasury auction (results due at the top of the hour), US yields are slightly lower on the day. 10-year notes, the market benchmark, are yielding 3.93%, down from 4.00% after upbeat retail sales and jobless claims reports. Usually rates rise ahead of auctions as primary dealers push yields up and prices down so they can buy the auction more cheaply. Last months 30-year sale did not go well so markets will be especially watchful for signs that demand for long government debt continues to wane. Another poor auction could take the steam out of equities, as yesterday 10-year note sale did.

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