Wednesday, April 10, 2024

Bond Vigilantes Coming Out

 Had to happen sooner or later.

...when the Treasury sold $39 billion in a 9-Year 11-Month reopening moments ago, all hell broke loose.

Stopping at a high yield of 4.560%, this was not only almost 40bps higher than last month's 4.166% and the highest since October, it also tailed the 4.529% When Issued by a whopping 3.1bps, a surge compared to last month's tail of just 0.9bps, but also the highest tail since the 3.7bps in Dec 2022 and also the third largest tail on record!...

(A "tail" is bad news, signifying a lack of buyers.)

What you learned:  US Treasury bonds--at least, the 10-year--are not finding eager buyers as you can see from the rest of the posted article.  That means that bond buyers think less of US credit.

That's Biden's $$bazillion spend-splurge.  Not only inflation, but a future as debt-slaves. 

Thanks Joe!

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