Results of the $26 billion bond sale
- Prior was 1.330%
- Directs 11.9% vs 10.5% prior
- Indirecets 59.8% vs 72.0%
- Bid to cover 2.14 vs 2.50 prior
That's a big miss and will put the steepener back in vogue. It's also good for USD/JPY on foreign demand.
Demand was strong in yesterday's 10-year sale but you can't blame anyone for not wanting to lend to the US government at 1.378% for 30 years.
Here's the cash market response:
