The prior 3-year auction came after Powell’s hawkish Humphrey Hawkins testimony but prior to the bank runs and sold at 4.635%, or around 80 bps above current levels.
The prior two auctions were a 0.6 bps stop-through and a record 4 bps tail. This one was right on the screws so it shouldn’t have any noticeable effect on bonds, let alone FX. USD/JPY is trading near the highs of the day, up 13 pips to 133.74.
This article was originally published by Forexlive.com. Read the original article here.