The 5 year note auction was decent, a touch better than what was seen in the 2 year yesterday but in the context of turmoil in the European bond markets, one would have expected better. The yield was a touch above the when issued. The bid to cover of 2.75 was above the one year average of 2.51 but more in line with the average over the last 6 of 2.69. Direct and indirect bidders took a total of 63.2% of the auction, the highest since Nov ’09. The Treasury sells 7 yr paper tomorrow. Bottom line, the US Treasury market is in an interesting place where we have seen a flight to safety this week and a Fed that may keep rates low forever on one hand and an improving economy, rising commodity prices and a financial situation in the US that doesn’t look much different than Greece on the other.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.