Treasury auction today could have been worse; yields climb anyway

The U.S. Treasury auctioned off $35 billion in 5-year notes today. The yield climbed to 2.658%.

In trading the 5-year Treasury closed at 2.68% today. That yield is up 23 basis points in the last month.

The yield on the 10-year Treasury note closed at 2.94%, up 5 basis points on the day, and is now up 28 basis points in a month. (It takes 100 basis points to equal one percentage point.)

In other interest rate news suddenly Wall Street houses–in this case BlackRock–are talking about the potential for 5 interest rate increases from the Federal Reserve in 2018. It was only yesterday that a few daring souls started to talk about the possibility of 4 increases. The consensus has been for two to three interest rate moves from the Fed this year.

The Treasury continues its heavy schedule of debt sales tomorrow with an auction of $29 billion in 7-year notes.