Just a 0.375% yield on the 2 year note? No problem. Treasury continues to see record demand at bond auctions despite record low yields. The non-existence of inflation concerns and government default has buyers banging down the doors at Treasury. Yesterday’s bid to cover ratio of 3.78 is the highest in several years. This data must be incredibly confusing for inflationistas and defaultistas who have been betting on higher yields and tanking demand for bonds for several years now.
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