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High U.S. Treasury yields may attract buyers, but the bond auction will be closely watched.
On June 9, Pepperstone analysts said that when the yields on 30-year, 10-year and 2-year U.S. Treasury bonds are around 5%, 4.5% and 4.0% respectively, they may attract buyers. These price points have proven “attractive to low-end buyers in recent weeks.” However, he said, investors were cautious ahead of this week’s U.S. Treasury auction given the U.S. fiscal problems.