The 30 yr bond auction was a touch weak as the yield of 4.49% was the above the when issued by a few bps. The bid to cover of 2.60 though was above the 12 month average of 2.53 but below the prior two. The level of direct and indirect bidders were in line with the few prior auctions. In light of the global scrutiny of profligate government spending and fiat currency debasement, loaning money to the US government for 30 years without inflation protection is certainly a leap of faith and considering this, the US treasury should be happy with today’s results, notwithstanding the slightly higher yield. Peter Boockvar
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