NEW YORK: New high-grade bond sales are expected to slow this week as the US summer lull starts to kick in, with syndicate desks calling for just US$15bil (RM62.1bil) to US$20bil (RM82.8bil) of fresh supply.
Eyes will be on Treasury yields following a turbocharged flattening of the curve as traders brought forward expectations for when the Federal Reserve will start raising rates. Increasing confidence that Fed tightening will help check inflation weighed on the long-end Friday, sending the 30-year yield to a level not seen since February.