Many Investors Pass on Latest Treasury Sale
The government’s budget surplus means the Treasury’s borrowing needs are shrinking--but apparently not as fast as investor demand for Treasury debt.
The Treasury’s auction of $15 billion in two-year notes on Wednesday met with such poor demand that investors’ total bids were just 1.83 times the auction amount--far below the average ratio of 2.41 in the previous 10 note sales, and the weakest demand since March 1983, according to R.H. Wrightson & Associates.
The yield on the notes was 5.009%, above expectations.
Investors’ lack of buying interest suggests that many believe that the Federal Reserve is likely to raise interest rates in coming months, affording higher yields on shorter-term notes and bonds for those who are willing to be patient.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
