Not much debt issuance this week other than the usual huge amounts of T-bills, which are very short duration. Yesterday there was an auction of $13 billion worth of 20-year notes, which went off about as expected. The rate paid was as expected and a little lower than last month’s similar auction, at 4.94%. Demand was solid, including from the all-important foreign buyers, who we have relied on for years to prop up our debt-driven government. Paying 5% for the privilege of living on borrowed money is a lot worse than paying 3% and brings the end of the party closer faster.
