Treasury Rally Holds Amid $20B Corporate Surge

Despite a surge in corporate supply in the US high-grade primary market this week, the Treasury rally remains intact, with over $20 billion set to price today, marking the largest volume day since March 11.
Treasury yields managed to gain even with the increased supply, as the US Treasury plans to maintain coupon auction sizes and start buying back its debt, while the Fed's Treasury runoff cap was reduced to $25 billion a month.
The strong demand for investment-grade paper, with real yields between 5% to 7%, is alleviating pressure on the Treasury market, as companies announce significant stock buybacks, potentially leading to more corporate issuance amidst signs of economic slowdown.