An interest coupon of a pathetic .37% was no deterrent as the US Treasury sold 3 yr notes with the best bid to cover since at least 1993. The yield though was in line with the when issued and direct and indirect bidders took the least amount since April with dealers owning the rest. This follows the 6 month bill auction in Germany yesterday where creditors will PAY to lend. With this insatiable demand for punk yields and safety, it still says a lot about market fears with economic growth combined with the belief that central banks will continue to do everything they can to price fix lower the level of interest rates as a result.
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