US Treasury’s bond issuance calendar matters as much as the Fed decision! | MarketTalk: What’s up today? | Swissquote

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The Bank of Japan (BoJ) kept interest rates unchanged, redefined the 1% limit on the 10-year JGBP yield as a loose ‘upper bound’ and scrapped its promise to keep that level intact. Alas, the move was less aggressive than expected by the market and sent the yen tumbling.
But the spike in the 10-year JGB yield to almost 1% should’ve pulled the pair lower – especially after the news that the US Treasury will be borrowing less money in the last three months of this year.
The US Treasury Department said yesterday that they are planning to borrow around $776 billion in the final quarter of the year – huge but below the expectation of around $800bn and below the $1 trillion that they borrowed in the July-to-September period.
The Federal Reserve (Fed) starts its two-day policy meeting today, and is expected to keep rates unchanged. In the absence of a surprise rate decision, or a surprise forward guidance about a rate decision, what will really, really matter this week for the US sovereign space and the faith of the US yields, is the US debt situation, and the Treasury Department’s quarterly announcement on details regarding the size and the maturity of the bonds that they will issue to borrow that extra $776 bn this quarter. The composition of the US Treasury’s bond issuances will be crucial.
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