The U.S. Treasury Department in the latest auction of $24 billion for a 30-year periodU.S. Treasuries, suffered an unprecedented failure, triggeredInvestmentsWho's forU.S. Treasuriesof concerns. TailSpreadsThe record breaking means that the auction is unsuccessful and people are interested in buyingU.S. TreasuriesEnthusiasm decreases. This also signsU.S. TreasuriesThis was once hailed as "risk-free."InvestmentsThe myth of "product" is about to be shattered. The disastrous nature of the auction can be seen by re-analyzing the situation as a whole.
TailSpreadsIt's measuringU.S. TreasuriesAn important measure of the success of an auction, it refers to the yield of the winning bidExpected rate of returndifference between the values. TailSpreadsThe bigger, the less successful the auction is, which also means that the auctioneer is interested in buyingU.S. TreasuriesThe lower the enthusiasm of the Ministry of Finance, as well as for the Ministry of FinanceU.S. TreasuriesIncreased risk of paying higher interest. In this auction, the highest acceptable yield was higher than the pre-auction market expectation of 53 basis points, the largest tail everSpreads。This also means for:U.S. TreasuriesDemand was bleak, and the auction caused widespread alarm.
Description: The tail in this auctionSpreadsset a historical record and highlightedInvestmentsforU.S. Treasuriesof hesitation and uncertainty. This result heralds a sign of a company that was once considered "risk-free."Investmentsproducts".U.S. TreasuriesThe myth is about to be shattered.
The cold reception in this auction is even more cold than ever. Despite the relatively low winning rate, there is still almost a quarter of the 30-year tenorU.S. TreasuriesNo one buys it. Specifically, as an indicator of domestic demand in the United States, the allocation ratio, including direct bidders, was 1516%, the lowest since six auctions. As a measure of overseas demand, indirect bidders were allocated 601%, which is also lower than the average of the last six auctions. This means both at home and abroadInvestmentsforU.S. Treasuriesdemand has dropped dramatically, triggering a demand forU.S. TreasuriesConcerns about imbalances between supply and demand.
Explanation: The cold reception and the decline in the allocation rate of this auction highlight the importance ofU.S. TreasuriesInvestmentsConcerns are growing. Whether it is a domestic or foreign market,InvestmentsforU.S. Treasuriesdemand is declining significantly.
In the past,U.S. TreasuriesIt has always been considered "risk-free."Investmentsproduct", its safety andLiquidityReceived by the wideInvestmentsof the favor. However, with the tight financial situation in the United States as wellU.S. TreasuriesThe size of the soaring market forU.S. TreasuriesConcerns have intensifiedInvestmentsbegan to choose to retreat. Although the US Treasury and the Federal Reserve want to raise by raisingU.S. Treasuriesyields to attractInvestments, but the auction results showed that despite the fact that the winning interest rate reached 4769%, but still 2473% of the shares were not bought. Therefore,U.S. TreasuriesAs "risk-free."InvestmentsThe myth of "product" is gradually being shattered.
Elaboration: The view in the past that the United States will not default is that it isU.S. TreasuriesStill, withU.S. TreasuriesThe scale of the rise sharply andInvestmentsforU.S. TreasuriesThis view is being questioned. Hold it nowU.S. TreasuriesThe risks are increasing day by dayU.S. TreasuriesThe shattering of myths is no longer far off.
U.S. TreasuriesThe auction was cold, showing that the market is forU.S. Treasuriesuncertainty and worry. InvestmentsThe retreat of the people ledU.S. TreasuriesThe shift in supply and demand has made it more difficult for the U.S. Treasury to take over. U.S. TreasuriesAs "risk-free."InvestmentsThe myth of "product" is being shattered in the futureU.S. TreasuriesThe market will face even greater challenges. At the same time, the failure of the auction also triggered a dive in U.S. stocksInvestmentsforU.S. TreasuriesConcerns are growing. At the moment, the United States** is still issuing debt aggressively and continues to expandU.S. Treasuriesscale, which will makeU.S. TreasuriesIt's getting harder and harder**. Therefore,U.S. TreasuriesThe continued increase in size will lead to moreU.S. TreasuriesThunderstorm, currentU.S. TreasuriesMythology will face even greater challenges.
Note: This article is based on existing reports and analysis, and the views expressed only represent the author's views and do not constitute themInvestmentsSuggestion.