The bid-to-cover ratio was 2.43, the lowest level since August, and probably the main force behind the higher yields. Investors appear to be willing to take on more risk in the equity markets, leading to lower prices and higher yields for U.S. securities. The lower number of claims for jobless benefits reported earlier today also figured into the auction results.
Producer price inflation rose more than expected today, but consumer prices have remained in check and worries about inflation have been relegated to the back burner, at least for now.
The rise in the 10-year yield puts an exclamation mark on investors’ belief that the global economy in general and the U.S. economy in particular are not as bad as everyone had feared they would be following sequester and heading into a possible government shutdown later this month.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.