It’s the re-opening of last month’s 30-year bond, to the tune of US$13 billion. The WI market is at 3.38% but there is talk of a rate as high as 3.42%, which would send USD/JPY another leg higher (spot at 83.67).
Reading through some of the chatter, the bond market appears to be flush with fear about a terrible result. It’s probably overdone and the better trade might be to close out USD longs ahead of the result because a yield of 3.37% or lower could prompt some relief bond buying, which will hurt the buck.
Results at the top of the hour.
