Investors Clamoring For Debt, Bid Nearly 4-1 For 2 Yr Auction

Investors continue to gobble up government debt, as the bid to cover on today's 2 yr auction was almost 4 to 1, yielding the lowest interest rate on record. Investors bid $3.78 for every $1 the U.S. Treasury sold today, yielding 0.441%, as investors seek safety. This is especially noteworthy, as investors had bid $3.21 for every $1 sold in the past four auctions, so this is a noteworthy pickup in demand for U.S. debt. Indirect bidders, which includes foreign central banks, bought 39% of the sale, versus the recent 34.9% amount. Direct bidders, including domestic money managers, purchased 10.8%, far lower than the 15.5% they had been buying.