One of the reasons that Treasury yields didn't stay lower after the CPI report was lingering supply today. The Treasury is set to offer $39 billion in 10-year notes at auction at the top of the hour.
The is a repoening sale with them trading currently in the cash market at 4.3162%.
BMO warns about a soft result:
Foreign demand is a bigger wildcard than usual given the recent outperformance of Treasuries versus EGBs and, most particularly, Bunds. All things considered, we're biased for a tail at 1pm EST.
