From CNBC. The Treasury has been holding debt auctions this week. Tuesday’s was for two-year instruments and Wednesday’s was five-year. Tuesday’s auction was “tepid” and Wednesday’s was, in the words of Rick Santelli, a “bow-wow”. Today’s auction is for seven-year instruments and Santelli isn’t terribly optimistic. As the commentators note, weaker demand for Treasury debt could be a sign of health – as the stock market has been better, people are not seeking safety as they once were.
However, even three weeks ago, there was brisk demand for Treasury debt and with continued warnings from the Chinese and the spiraling deficit, perhaps buyers are losing faith.
