Somewhat surprisingly, the auction of $28 billion 7-year Treasury Notes went pretty well. The notes were sold at a yield of 3.092%, compared with pre-auction talk of 3.124%. Some 61.2% of the notes went to indirect bidders, while the bid-to-cover ratio came in at 2.74. That compares with 62.5% and 2.63 at the last sale of 7s in July.
7-year note auction goes pretty well
Previous post: $39 billion sale of 5-year notes decent
Next post: July income 0%, spending +0.2%
{ 1 comment… read it below or add one }
Mike why are you surprised? Isn’t it simply that foreign governments are preparing for another economic crisis. Maybe the success of the current HUGE treasury auctions are simply a reflection of the fear still out there? Ironically, even though the US will be the catalyst for a second economic crisis, the world runs back to the dollar for safety. I never hear you or Martin ever discuss the idea that the worse things get, the more debt we seem to be able to sell the world. Am I missing something?
PS I left a message on your New Home Sales Surge 9.65%.. posting. Hope to hear your opinion over there. Thanks.