Treasury yields fall further ahead of the main event tomorrow

<p>10-year yields are now down 6 bps to 4.818% as lower yields are also pinning the dollar down in European morning trade thus far. It's a mix of moods in markets, with the Japanese yen also sliding amid a less hawkish than anticipated BOJ and then the announcement that there was no Tokyo intervention this month. Meanwhile, equities are able to claw its way back into positive territory with S&amp;P 500 futures now up 0.2% on the day.</p><p>It's still all to play for this week and in the case of the bond market, it's all about the main event tomorrow. And no, it's not the Fed.</p><p>Instead, the focus will be on the quarterly refunding announcement by the US Treasury in which they will unveil the details of their planning in terms of funding a widening budget deficit. In other words, bond traders will be looking to if they are going to step up sales of longer-term debt in relation to that. It's all about the supply game.</p><p>This will then impact the upcoming auctions in November where we will see ones for 3-year notes (7 November), 10-year notes (8 November), and 30-year notes (9 November).</p><p>Watch this space. This is where the reverberations to broader markets will start from.</p>

This article was written by Justin Low at www.forexlive.com.