The government was able to sell a key debt at a cheap rate this afternoon.
The Treasury Department sold $39 billion worth of debt expiring in almost 10 years. The highest rate awarded was 4.033%, lower than the average of 4.407% seen in six such prior auctions and 0.013 percentage points lower than the yield seen in pre-bidding deadline for the auction, according to stats shared by BMO Capital Markets.
Perhaps the most telling stat was for primary dealers–banks like Deutsche Bank Securities and Goldman Sachs–that buy up the leftover debt. They accepted 4.2% of the supply on offer, the lowest on record for such debt.
www.barrons.com
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