Last week was a pretty good week for the issuance of US debt, which is increasing at a breakneck pace, give continued deficit spending and the need to rollover substantial amounts of our $35 trillion burden. There was a $58 billion auction of 3 year notes that had a lower than expected interest rate and very strong demand characteristics. Then there was a $39 billion in the benchmark ten-year notes, that also had a lower than expected interest rate, at 3.65%, also with strong demand. Finally on Friday $22 billion in 30-year bonds were sold, at a lower interest rate than the prior month and at average demand. Strangely, however, yields in the aftermarket rose after these auctions, indicating that buyers in that market are not convinced interest rates are actually going to come down much. You can learn about upcoming auctions and track results here. (Treasury Auctions)
