The 3 note auction was solid. The yield was .346%, just under the when issued and the bid to cover was 3.96, the most since at least 1993 exceeding the previous high of 3.94 in Sept. Also, direct and indirect bidders took the most amount of a 3 yr since Nov ’11. Bottom line, the 3 yr maturity has two big things going for it, for now. Number one, the Fed has told us their intent is to keep rates pinned to near zero “at least through mid-2015” and secondly, the growing global economic concerns will keep a solid bid to liquid, short term maturity instruments irrespective of their current yields.
Read this next.
Previous PostThings I don’t Understand