Treasury Holds 'Awful' Auction; 10-Year Yield Hits 3.99%
4.0% on the 10-year Treasury here we come. Demand for 10-year Treasuries at today's auction was worse than many analysts had expected it to be, pushing the yield on said notes to 3.99%.
A senior vice president of MF Global called the auction "awful" and the government has to issue a lot more debt over the next several months.
I have been blogging about rising rates since March (see post: The yield on the 10-year is slowly creeping back up). This is something that everyone needs to keep an eye on. Rising interest rates will not help the ailing economy, particularly housing. The 10-year has traditionally been linked to mortgage rates. The higher rates go on mortgages, the more downward pressure it will put on home prices.
Treasury Sells $19 Billion in Ten-Year Notes at 3.99% Yield