Citi: No auctions this week give US Treasuries temporary relief

Citigroup strategist Jason Williams stated in a report that the U.S. Treasury market may catch a breather this week, but unless oil prices fall significantly, there is currently no clear catalyst to drive a substantial rally in Treasuries. He noted that over the past month, the repricing at the short end of Treasuries has reached historical highs not seen since the 1990s, suggesting current valuations may be temporarily elevated. Williams pointed out that U.S. Treasury supply might have been partly responsible for the bond sell-off last week, while this week there are no U.S. Treasury auctions. He said, "Since 2026, in weeks with Treasury auctions, Treasuries often experience a larger sell-off compared to weeks with no new issuance."