Treasury yields retreated Thursday afternoon following a successful 30-year bond auction. Bond yields rose earlier after minutes from the European Central Bank’s December meeting showed senior officials were looking to change its policy guidance to reflect the strengthening eurozone, drawing speculation the ECB would stop its bond purchases earlier than expected. The 30-year bond yield was down 1.9 basis point to 2.872%, according to Tradeweb. The 10-year note yield fell 0.9 basis point to 2.540%. The 2-year note yield was at 1.977%. The bid-to-cover ratio stood at 2.74, the highest since Dec. 2014. Treasurys trading can be influenced by sales of government paper. The bid-to-cover gives a sense of appetite for the auction, a number showing the ratio of total bids received to bids accepted. “This depth of demand should allay some concerns about a runaway increase in yield,” wrote Aaron Kohli, fixed-income strategist for BMO Capital Markets.
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