Weird Dollar rumours failed to shake today’s 3-year U.S. note auction, which went moderately well.
Foreign and institutional demand (as measured by indirect bidders) fell to 48.8%, from an average of 54% since June.
Yet it remained above the 43.13% average of the last year. Some blamed less than stellar demand on Chinese holidays.
WSJ: “All in all, a pretty good, not great, auction,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co., “although this shouldn’t be surprising to anyone, as auctions have repeatedly been quite easy.”
Traders attributed the tepid demand in part to the national holidays in China. Financial markets in China are shuttered and will remain so through Thursday.
Despite all the dollar-bashing, people were willing to loan the US government money for three years at just 1.445%, which is pretty astounding.