US Treasury bonds decrease for the second day in a row, after the demand is weak at a auction of $ 58 billion

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The debts of the US government fell sharply on the second day in a row after the treasury auction in the short term raised a value of 58 billion dollars on the weak demand, and the hedge funds continued to relax quickly.

Standard 10 years Cabinet The return, which supports trillion dollars worldwide, jumped 0.11 percentage to 4.3 percent on Tuesday. It has risen about 0.3 percentage points over the past two days – a big jump that usually moves with small increases.

Selling on Tuesday is the latest sign of how to get rid of some investors to low -risk assets in cash, as President Donald Trump’s tariff for major commercial partners raises great fluctuations in the market. The hedge funds were adult players, as they sought to reduce the risks in their governorates and reduce extensive deals in the treasury market.

The feeling of depression increased on Tuesday after the US Treasury auction for three -year notes on the weakest demand since 2023.

The auction has made a higher return than expected, and dealers ’trading – banks committed to purchasing any supplies that other investors did not accommodate – increased 20.7 percent of the offer, the highest percentage since December 2023, according to Vail Hartman in BMO Capital Markets.

This disappointing deal will take a look at the upcoming auctions this week, including $ 39 billion of notes for 10 years on Wednesday and $ 22 billion of 30 -year bonds on Thursday.

The weak auction will also add to the concerns that foreign investors are turning away from the US government’s debts in an increasing time of concern about high American debt levels and targeting the Trump administration to government institutions such as independent organizers.

“The poor auction will be fed for three years today, certainly rumors about the withdrawal of foreign investors from the Treasury Market,” said Matthew Scott, the head of the basic fixed income and the multi -asset trade in Alliassebernstein.

“They do not want the treasury at the present time, they are in a” Get Me Out, “the person added that the auction was so bad that it may have been weighed on stock markets. S&P rose 4.1 percent on Tuesday, but closed 1.6 percent of volatile trading,” said one of the hedge fund manager who asked not to naming the hedge of the hedge.

The person said: “After the joke, the market (stocks) started,” although others attributed the afternoon sale to the wider tariff fears.

The hedge funds also continued to limit the risk in their governorates on Tuesday. Traders and analysts secured many strategies that were not binding, including the “basis trade” in which funds use huge sums of borrowing to take advantage of the differences in treasury prices and associated future contracts.

This year’s hedge funds have also placed major bets on the possibility that the Trump administration will reduce the banking organization. One of the rules in particular – the standard leverage ratio – makes it more expensive for banks to carry debt like a cabinet.

The hedge funds expected that the treasury bonds would surpass the barter of interest rates – the derivatives that allow traders to predict moves in the debt market – because without these regulations, banks will buy more bonds.

But with the tariffs of markets, bond returns with investors, including banks, and the sale of their treasury bonds. As a result, the interest rates of interest rates exceeded the treasury bonds, as popular trade raised and forced investors to get out of their jobs.

“It is a full and strict hedge box,” said a trader on Wall Street.