US Treasury to Auction $235 bn in Bills and Notes

I have written so little on the markets over the past month, sorry about that. Needless to say equities have been enjoying a nice move to 2009 highs, and the question on the table is whether it is sustainable. I am withholding my opinion until I get through the mountain of investment reading I have stacked up.

The big news this week, is about the success and/or failure of the HUGE government debt auctions. From JP Morgan – “The world is watching U.S. bond markets closely, as the Treasury will issue $235 bn in bills and notes in a little over a week. Yesterday’s 5-year auction was on the weaker side on a bid-to-cover basis, but not extraordinarily so. To date, rising Treasury issuance has had little adverse impact on yields (Fed purchases of $220 bn have helped), but are only 12%-15% of the FY 2009 deficit).” Did you read that part about the $235 billion in a week????? Yes my friends, this is at the heart of what concerns me about the markets in general. People have too much debt and so does our country….

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