Treasur - ies

Yesterday's auction of $40 billion in one year notes was a great success. People keep saying that there isn't enough demand for Treasuries. They say there's too much supply. However, if we look at the auction numbers, there's no problem at all. Bid to cover was 2.6 times, greater than the average of 2.3X over the last ten auctions. Foreign demand was strong as well, taking 28% of the issue.

If the auctions the rest of this week are successful, it will show that the Treasury can raise $100 bil at the drop of a hat. That means that they can finance a $1.5 trillion deficit easily. That's only $30 bil per week. (Only!)