The latest 3-year US Treasury auction went well, with the bid-to-cover above that of August and also recent averages. Demand was strong, but from whom?
Bloomberg: Indirect bidders, a class of investors that includes foreign central banks bought 54.2 per cent of the notes at today’s auction. They bought 62.5 per cent of the securities in August, the most ever.
Indirect bidders were a smaller proportion than they were in August. Perhaps central banks have become less eager to accept dollar-depreciation water torture.