Treasury just bought back $1.19B of 5-7yr debt when they could've taken $4B max. They got $8.4B in offers.
That's a 14% acceptance rate. Market wanted to dump way more paper than Uncle Sam was willing to eat.
Either they're being picky about pricing or they don't want to flood the system with cash right now. Probably both.
Debt buybacks = less supply = rates should drop = good for risk assets in theory. But when you're this selective it's not moving the needle much.
Worth watching if this pattern continues. Could signal they're worried about inflation heating back up if they inject too much liquidity.
That's a 14% acceptance rate. Market wanted to dump way more paper than Uncle Sam was willing to eat.
Either they're being picky about pricing or they don't want to flood the system with cash right now. Probably both.
Debt buybacks = less supply = rates should drop = good for risk assets in theory. But when you're this selective it's not moving the needle much.
Worth watching if this pattern continues. Could signal they're worried about inflation heating back up if they inject too much liquidity.