As usual, very hard to read the US debt auctions. Yesterday’s was quite bad. Today’s was weird in a way. $39 billion in ten-year notes. From a yield perspective, at 4.44% it was higher than last month’s, but lower than the craziness we have seen in the after-market this week and also quite a bit lower than expected. (The bids were in on this auction before today’s tariff news.) Demand on the surface again looked good, but as with yesterday the allocations looked bizarre. Very strong foreign buying, again possibly related to currency exchange moves, but incredibly low domestic demand. What this means is that foreign buyers were willing to accept a lower interest rate than were US buyers. You have to wonder if this can or will keep up. (Auction Results)
