The US yesterday sold 10 year bonds at a record low yield of just 1.459%, with a bid to cover ratio of 3.61 times, higher than June’s 3.06 times. Analysts had expected the notes to be sold at a yield of over 1.51%. A difference between the actual yield of the auction and forecast yields is virtually unheard of. Yields were at 1.622% at the last 10 year auction in June this year. 30 year bonds are due to be auctioned today. The demand, particularly at these yields, is not a good sign for the equity marketsUntil then, we'll just have to make due with the Love Vigilantes...
Thursday, July 12, 2012
Bond Vigilantes: Still Just Over The Horizon
We're all just waiting for the Bond Vigilantes to come and destroy America. I guess it'll be another day. US 10 year bonds hit an all-time low.