As investors braced for Wednesday's biggest ever 10-year Treasury bond auction of $38 billion, 10 year bond yields popped to their highest in a month - prodded by optimism about a COVID-19 vaccine and also government indications it would "bond out" borrowing to cover social security and Medicare shortfalls due to President Trump's proposed payroll tax cuts. The scale of bond borrowing related to huge pandemic-related government supports is becoming clearer - heaping pressure on the Fed to keep the debt pile affordable.
Chart by Ritvik Carvalho and commentary by Mike Dolan.
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