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More Great US Debt Sales News

By April 11, 2024Commentary

Following Tuesdays poor three year debt auction, and then Wednesday’s higher than expected CPI report, you knew that the ensuing US Treasury auctions would be humdingers and they were.  First up yesterday was a $39 billion ten year not auction.  The size of these auctions creates enormous pressure to find enough buyers, and it showed in the results.  Last month the same length issue sold with a 4.17% interest rate.   This month, the Treasurey had to pay 4.56% to get the sale done, which was significantly more than it expected to pay.  Demand parameters were also very weak.

And today, more great news for Bidementia’s re-election bid, as first we saw that the Producer Price Index, which measures what makers of goods and services receive for their products as they leave the factory or office floor, in contrast to what consumers ultimately pay for them, rose more than expected, indicating continued inflation pressure is in the pipeline.  Then, the longest maturity currently issued by the Treasury, a 30 year bond, had another extremely weak auction.  A mere $22 billion was sold (Treasury is trying to keep most debt on the short end as it engages in the delusion that rates will fall soon and it can refinance our huge debt at lower rates), but the rate to be paid was 4.67% compared to 4.33% last month.  And once again, demand statistics were poor.

But don’t feel too sorry for sleepy, senile Joe, he can always go back to influence peddling for China and any other country that will pay him.  Do feel sorry for the average consumer, who will continue to see a decline in their standard of living due to ongoing inflation.

Join the discussion One Comment

  • Rob says:

    I expect congress will eventually force 401k contributions to be 25% treasuries. I actually predicted that 8 years ago but the Fed bailed them out then. That was actually a stealth bailout of the EU, but the appetite to do that again is low, forcing treasury buys could be sold as bailing out ourselves. It will hurt the stock market though.

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