Another strong US bond auction

The US sold 30-year bonds in a re-opening with a yield of 3.758% compared to 3.778% in the WI market. The bid-to-cover at 2.64 was also the highest since February.

There are a lot of ways to interpret that because of the debt problems. Obviously the market isn’t worried about the defaulting on long-term bonds but the strong demand could be a sign of worry about the economy and/or a believe the Fed won’t taper until January, at least.

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