Strong 10 Year Auction Reinforces Bullish Tone

Treasuries were on the front foot for most of Wednesday's session, mirroring a continued retracement in equities and shrugging off another large day of corporate supply.

• Gains extended to session highs at 1300ET on a strong $38B 10Y note auction, which stopped through (1.338% high yield vs. 1.350% WI) on above-average cover ratio.
• 10Y outperformed: 2-Yr yield is down 0.4bps at 0.2162%, 5-Yr is down 1.6bps at 0.8062%, 10-Yr is down 3.9bps at 1.3342%, and 30-Yr is down 3.4bps at 1.9529%.
• Dec 10-Yr futures (TY) up 8/32 at 133-08 (L: 132-30.5 / H: 133-10.5)
• Corporate supply highlighted by $7B 5-part WalMart issuance (incl $2B Green).
• NY Fed Pres Williams delivered characteristically dovish remarks, remaining uncommitted on supporting a taper beginning by the end of this year. Little market reaction.
• The other dovish Fed communication of the day - the Beige Book - also met with little reaction, but notable for flagging slowing growth amid Delta.
• JOLTS showed a record excess of job openings vs the number of unemployed.
• Thursday concludes the week's Tsy issuance with $24B 30Y auction; initial jobless claims and the ECB decision also eyed.