Unloved Treasury Notes Becoming New Favorite in Fed’s Twist
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The U.S. Federal Reserve is finding no shortage of demand for the short-term bonds it’s selling to focus on longer-maturity debt, a sign that the strength in the economy seen in October may prove fleeting.
Traders submitted $748.5 billion in bids for the $54.4 billion of securities maturing from 2012 to 2014 that the central bank sold from its holdings since Sept. 23. The 13.8-to-1 ratio exceeds the average 3-to-1 bid that the Treasury has attracted for the $1.78 trillion of new debt it auctioned this year, government data show.