Investors fear new Treasury auctions will ignite repeat bout of selling
Repost from 3-8-2021
“Investors are bracing themselves for a trio of large US government debt auctions this week, after a recent sale of seven-year notes flopped and set off a bout of frenetic trading.”
USAGOLD note: From all appearances, the Fed has stepped out of the batter’s box for the moment, but that could change in a heartbeat. FT says these auctions are scheduled at a “tenuous time for bond markets.” Another poorly bid auction could release the trap door under the bond market.