US Treasury suffering auction shockers

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By Lewis McLellan
26 Feb 2021

The US Treasury held a seven year auction on Thursday, coming in the midst of a sharp sell-off in the Treasury curve. The result was the Treasury’s worst bid to cover ratio since 2009.

The US Treasury offered $62bn after receiving bids of $126.78bn, implying a bid to cover ratio of 2.04. One rates analyst called it “a shocker”.

The poor results drove US 10 year Treasury yields briefly over 1.6%, though they have since subsided to 1.46%.

"It was a weak day ...

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