A Joke Of A Bond Auction
Today, yields on the 10 and 30 year U.S. Treasury Note are declining sharply after the U.S Treasury auctioned off $24 billion in 10 year T-notes. Yesterday, the demand for the T-notes was nonexistent as yields spiked higher. Has anyone noticed that after a bad bond auction the very next day there is so much demand for T-notes in the next auction. Who is buying these T-notes today? According to reports today there was a huge indirect bid, roughly correlating to demand from overseas, led to the robust results. Indirect bids took 71.3 percent of the sale, the U.S. Treasury said. Are you kidding me? What a joke? Maybe it was Jean-Claude Trichet helping out his buddy Ben Bernanke.