Brian Chappatta, Columnist

Huge Bond Auctions, Record-Low Yields, Can’t Lose

Demand was intense for the Treasury’s $85 billion in combined sales of two-year and five-year notes.

April 27, 2020 at 7:29 PM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

No amount is too big.
Photographer: Alberto Pizzoli/AFP/Getty Images

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The latest round of U.S. Treasury auctions must have left Lloyd Blankfein at a loss for words.

The former head of Goldman Sachs Group Inc. posted a perplexing tweet last week, contending that “in finance, most surprising to me is that despite the trillions the US is adding to our budget deficit and national debt, investors (many foreign) will lend the US a virtually limitless supply” of dollars at low yields. Never mind the fact that the federal government doesn’t need anyone to lend it its own currency. The dollar is not at risk of losing its reserve status, so adding to the deficit at a time of an unprecedented nationwide shutdown makes good sense. It’s not mind-boggling.