We've seen recent interest in bond funds, primarily 20/20+ years. Today's $35 billion issuance was strangely one of the strongest auctions we've seen recently. Goldman had a short call on the 5 year bond, which means they we're probably buyers, but the interesting stuff is in the details.
Despite this auction adds another $35 Billion to the debt ceiling breach and deducts $35 billion from Federal pensions (you wouldn't think there would be a lot of interest in a house that doesn't have it's affairs in order), the issuance was a curious success.
Indirect Bidders stepped up (i.e.-Foreign Central Banks) to take down 47.1% which is the strongest participation in about 7 months, this despite the fact the yield dropped from 2.124 down to 1.183-which is the lowest yield since last December.
Any comments or thoughts on this curious auction are welcome. (BT46N2 at Gmail.com)
5 years ago
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