$35B in Treasuries

Nothing too remarkable, except for the 2 ear note auction, Primary Dealers showed the lowest interest in 2 years which harkens back to a recent post on 4/24 ,


"When you can't sell U.S. debt and the market is flooded with additional sources of US debt for sale to the tune of $3 trillion dollars, what's the answer? One the Fed can't stop buying debt, so some sort of QE 3 in some form is looking more likely. Secondly to sell whatever is possible ( and the Fed can't buy it without the Primary Dealers buying it from the Treasury, which until now has been a risk free handout of billions of dollars to the PD's) even the Primary Dealers now are going to want a higher rate of interest as the holding period which has been a few weeks typically before the Fed monetizes it, is no longer a risk free assumption."


It's all falling into place very quickly now.