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Weakest U.S. Bond Auction in Decade Validates Dimon’s Warning
By and
Updated on
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Demand for $27 billion sale was poor by several metrics
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JPMorgan’s Dimon says U.S. yields are ‘extraordinarily low’
Weak Bond Auction Validates Dimon's Warning
The U.S. Treasury on Wednesday saw the weakest demand for its benchmark 10-year note in a decade, illustrating the diminishing appetite among some investors to accept current yields.
Bids for the $27 billion of notes exceeded the offering by 2.17 times, the lowest since 2009. While there’s no danger that the government of the world’s biggest economy would fail to fund itself, the drop underscores a shift in demand dynamics for Treasuries that could leave them vulnerable to spikes in volatility.
