westwest888

New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today?

Owen - lemme guess, default is impossible because it's a 10 standard deviation event in your model. I would short treasuries, except the counterparty won't be able to pay when I'm right because they have no money.

New Treasury Supply: Did It Already Cost Taxpayers $240 Million Today?

You make a very good point. This bond issue had to compensate buyers an extra 40 basis points or it would have failed. This will ramp the cost of rolling over all existing US debt (11 trillion) which has an average maturity of 3 years. That increases the interest portion of the Congressional budget and inches us closer to the end game - DEFAULT.