Treasury Yields Near Record Lows Amid “Suspicious” Direct Bidder Demand; Suspicion Easily Explained

Courtesy of Mish.

Curve Watchers Anonymous is investigating the yield curve in the wake of reported “suspicious” bids for treasuries at the latest auction.

US Treasury Yield Curve Since 2003

click on chart for sharper image


  • $IRX: 3-Month Discount Rate
  • $FVX: 5-Year Treasury Note
  • $TNX: 10-Year Treasury Note
  • $TYX: 30-Year Bond

Chart above shows closing yield for the month except the front month is current.

Treasuries Approach Record Low After Note Auction

Bloomberg reports Treasuries Approach Record Low After Note Auction

Treasury 10-year note yields approached all-time lows after the U.S. sold $21 billion of the securities at a record rate and minutes from the Federal Reserve’s last meeting showed some members favor more stimulus.

The auction attracted record high demand from a group of investors that include pension funds and insurance companies. The notes drew a yield of 1.459 percent, compared with a forecast of 1.518 percent in a Bloomberg News survey of seven of the Fed’s 21 primary dealers. The previous record low auction yield of 1.622 percent was set last month.

Demand ‘Suspicion’

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