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.
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 markets
Until then, we'll just have to make due with the Love Vigilantes...

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