2 yr note auction showed solid demand

By Peter Boockvar - October 27th, 2009, 1:22PM

The 2 year note auction was very strong as the yield was about 3 bps below where the when issued was traded and the bid to cover at 3.63 is the highest since Aug ’07 and well above the one year average of 2.65. Indirect bidders totaled 44.5%, about in line with the previous few. With the October economic data out so far on the light side and persistent commentary from Fed members that rates will stay lower for longer, buying the two year note is a direct bet that monetary policy will not be reversed anytime soon and today’s auction is quite a vote on that belief.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “2 yr note auction showed solid demand”

leftback Says:
October 27th, 2009 at 1:34 pm
Who is going to buy all the US debt? The interesting answer is: we are. Domestic non-dealer buying is up.
http://acrossthecurve.com/?p=9687