The US had no trouble selling $25 bln 10s, with 2.81 dollars worth of bids for each bond on auction. The yield was close to the market at 3.47%.
Demand from banks is helping support the bond markets as they take advantage of the steep yield curve. Rather than lend to businesses and households, they are pouring money into risk-free assets and rebuilding profits and their balance sheets in the process. A replay of the early 1990s after the last real-estate bust.
