The yield was 2.895% which is fairly high. We saw a similar yield after QE1 ended and before the Jackson Hole speech announcing QE2, in essence the market is pricing in the same expectations it did back then, that there won't be a QE3.
Indirect bidders (foreign entities) had the lowest participation rate in 6 months. Primary dealers took a little more then 41%, which should shortly end up on the Fed's balance sheet, providing Goldman Sachs and 40 other primary dealers several billion dollars in risk free money.
Today's issuance actually breached the debt ceiling limit. There are some "buffers" built in and there are some ways to reduce debt by redemption of bills. Taking all this into consideration, the US is about $35 billion away from a total, no excuses, or buffers- breach of the debt limit. In mid April there is another scheduled auction for $67 billion in new bonds.
5 years ago
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