Treasury bill sale spooks market

Greetings, loyal minions. Your Maximum Leader wondered the other day what would happen if the Treasury tried to sell debt but found no one was buying? He called that post “Oy this can’t be good.”

Today the stock market was chugging along until later this afternoon.

Well… This isn’t good. The Treasury did sell bonds today. The good news is that they sold all the bonds they wanted to ($34 Billion worth - which is better than the UK which tried to sell $2.55 Billion worth but only sold $100 Million worth - must suck to be Gordon Brown now…). The bad news? The bid/cover rate (which your Maximum Leader only understands the most rudimentary way) dropped significantly. This means the number of buyers was smaller than expected. If this continues, one can speculate that the US will have to pay significantly more to get buyers to agree to finance the nation’s debt.

The poor showing by the bond sale spooked the markets and caused the bad finish to the day that started off well.

One wonders if future bond sales don’t go well how that will impact budget discussions on Capitol Hill… Okay… There is no point in wondering because most of our elected representatives are to friggin’ stupid to understand what his happening…

Carry on.

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