Monday’s auction of $32 billion of 3 year notes went well and is followed today by $24 billion of 10 year notes. In addition to government borrowing, U.S. companies are also taking advantage of low interest rates as $20 billion of high grade debt was brought to market last week.
Back in the news are the countries of Ireland, Portugal and Greece and markets are again concerned about the debt of these countries. What is unclear this time around is if there is a confidence crisis will U.S. treasuries be the recipient of the flight to quality bid.
Bonds closed worse on Monday and are faltering again this morning as the yield on the 10 year note has pushed back up to 2.58%. Mortgage prices are worse by approximately .250%.
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