US Treasury Prices Fall as Oil Rallies and Buyback Results Disappoint

U.S. Treasury prices fell on Thursday as oil prices jumped again amid rising tensions in the Middle East, with Brent crude surging to $107 a barrel. According to Sina Finance, PPI data also reinforced expectations that the Federal Reserve will raise rates at next week’s policy meeting, while a strong 30-year Treasury auction briefly slowed the decline before Treasury buyback results came in below expectations. Short-end yields rose as much as 12 basis points after 3 p.m. in New York, with the curve flattening in a bear move and long-end yields up about 7 basis points on the day. Treasury buyback results showed the amount of 10-year to 20-year notes purchased by the Treasury was below the $6 billion maximum, and the 30-year auction’s stop-out yield was 2.7 basis points below the pre-auction trading level, with primary dealer take-up at a record low.