You may have noticed our government spends a lot more than it takes in. That of course means the Treasury is going to have to issue a lot of debt in the form of bonds to cover that spending — a lot of it over the next year. Which raises a question: How’s that gonna go?
Recently, it hasn’t been going great. The last few times the U.S. Treasury issued bonds, investors were not impressed.
“Demand is not as robust as it was before,” said Marvin Loh, senior global macro strategist at State Street Global Markets.
The Treasury Department offered investors an interest rate. And investors said, “I don’t think so, do better.” So, the Treasury had to do better.
“If we go into an auction and the interest rate that’s required is higher than where we were before the auction, then it looks like the auction is weaker,” Loh said.
It was weaker because of uncertainty. The last…
