This is an archived article that was published on sltrib.com in 2017, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Treasuries fell Tuesday as corporate bond issuance resumed after a three-day hiatus, with seven domestic names slating offerings, six of which included a 10-year or a 30-year tranche, or both.

Yields were higher by three to four basis points points at 3 p.m. in New York after erasing declines of about 2 basis points. Session highs were reached after Fed Vice Chair Stanley Fischer said on CNBC he agreed with the median estimate of two more interest-rate increases this year.

Treasuries had risen in early trading amid gains for many European bond markets and uncertain prospects for congressional action on federal spending.

• Flows as yields reached session highs included a block trade in bond futures; separately, as Fischer was speaking 10Y futures volumes were heaviest of the day and sales of 10Y May 125.5 calls brought daily total to 17k

• IG credit issuance totaled $11.4 billion; there was no domestic IG credit issuance Monday, and last week's $24b haul was second lowest this year, which helped keep a lid on UST yields

• $34b billion 5Y auction was awarded at 1.950 percent vs 1.945 percent WI yield at bidding deadline, sixth of past seven 5Y auctions to tail, according to Stone & McCarthy

• Auction had support from futures positioning data suggesting speculators are in process of covering extended FV shorts; also, 5Y lagged in rally over past two weeks, causing 5s30s curve to pare around half of sharp steepening move spurred by March 15 FOMC meeting

• Monday's 2Y auction stopped 0.1bp higher than WI yield at bidding deadline; auction cycle concludes with $28b 7Y Wednesday

• Trump administration's failure to win House approval for health-care reform raises questions about whether agreement can easily be reached on a spending measure to keep federal government operating after current funding runs out on April 28; a shutdown "would certainly be a bullish event for the Treasury market and risk-off more broadly," BMO strategists said in note

• Earlier gains were pared further after Richmond Fed Manufacturing Index and Consumer Confidence Index, both for March, rose unexpectedly.