Treasury Auctions Off to Good Start, With Strong Demand for Three-Year Notes
- Sale gets lower-than-expected yield, strong bidding metrics
- Ten- and 30-year debt sales are ahead over next two days
This article is for subscribers only.
So far, so good for this week’s historic Treasury debt auctions — following trepidation last week when the announced sizes topped most bond dealer expectations.
Tuesday’s $42 billion sale of three-year notes produced a lower-than-expected yield, a sign that demand was stronger than anticipated. It also wound up almost entirely in the hands of investors, who obtained a record share relative to dealers. While that trend has disparate drivers, it signals that the US government need not be concerned about whether investors will show up in adequate numbers as it requests to borrow increasingly large sums.