Japan is in focus for bond-market traders after lackluster 40-year auction
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Weak reception to a 40-year auction of Japanese government bonds put pressure on Treasurys overnight, sending U.S. yields slightly higher as of Wednesday morning. "If anything, the
lackluster reception to Japan’s 40-year bond auction magnifies the widespread deficit and supply concerns that continue to provide a meaningful bearish underpinning in global duration,"
said BMO Capital Markets strategists Vail Hartman and Ian Lyngen. Still ahead during the U.S. session is a $70 billion 5-year Treasury-note auction, with results expected to be released
just after 1 p.m. Eastern time. At 2 p.m., the minutes of the Federal Reserve's May meeting are set to arrive.