The U.S. Treasury today auctioned $32 billion in 3-year notes at a yield of 0.346%, slightly higher than last month's auction but still near record lows. The bid-to-cover ratio reached 3.96, well above the 3.63 average of the last four sales.

The strong demand and low yields also pushed 10-year notes down by 4 basis points, to 1.71%, indicating that today's auction held down yields in the broader market.

Treasurys were stronger today following the revised International Monetary Fund (IMF) report on global growth. Calling the risk of a sharper decline in growth "alarmingly high," the IMF singled out the U.S. as the best house in a bad neighborhood. The fund forecast that U.S. GDP would grow 2.2% in 2012 and 2.1% in 2013. Nothing to be proud of in the abstract, but compared with other developed economies, the U.S. shines.

Today's low yields on 3-year notes underscores the continued weakness in the global economy and not any widespread enthusiasm about the U.S. economy.

Paul Ausick


Increase your money and finance knowledge from home

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum