Treasury Offers Good News. The 10-Year Yield Is Falling.

The Treasury is expected to borrow a smaller amount of net debt from the market, a helpful signal to the bond traders who are waiting to learn about the size of longer dated bond auctions. The Treasury on Monday lowered its borrowing expectation for the January to March quarter to $760 billion, $55 billion lower than its October estimate. Now investors will prepare for Wednesday’s announcement that will detail the exact size of long-term and medium term bonds the Treasury plans to issue.