20-Year Auction Yields 5.469%; Mortgage Applications Fall 5.3%

The Treasury's 20-year bond auction on Wednesday, Oct. 21, produced a high yield of 5.469%, compared with 5.42% at the previous sale. A 17-week bill auction priced at 4.155%, down from 4.195%.

FRED data for Oct. 21 showed the 10-year Treasury yield at 5.13% and the 2-year at 4.81%, leaving the 10-year/2-year spread at 32 basis points. The VIX closed at 16.68 and the high-yield option-adjusted spread was 3.27%. The effective federal funds rate was 3.88%. The latest broad dollar index value was 121.40 as of Oct. 16, while the UUP dollar ETF edged up 0.07% to 28.92.

Mortgage demand weakened. MBA mortgage applications fell 5.3% in the week ended Oct. 16, after a 2.7% decline the week before. The MBA 30-year mortgage rate eased to 7.41% from 7.50%. The purchase index fell to 129.2 from 139.3 and the refinance index to 503.1 from 513.5.

EIA data showed a 3.061 million barrel draw in crude oil inventories, larger than the 0.8 million barrel draw expected, and a 2.952 million barrel decline in gasoline stocks against a 0.4 million barrel expected draw. Distillate stocks rose 1.675 million barrels versus an expected 1.2 million barrel decline. FRED's latest WTI spot price was $107.89 a barrel as of Oct. 20.

Reuters reported that the Canadian dollar held near a four-week high as investors stuck to rate hike bets. A WSJ headline said Asian currencies consolidated amid focus on Mideast developments.

Data

Data: FMP, FRED. Figures are close-to-close unless stated.

In the news

• Reuters: Canadian dollar holds near four-week high as investors stick to rate hike bets
• WSJ: Asian Currencies Consolidate Amid Focus on Mideast Developments