- Prior was 4.173%
This is a poor auction and certainly doesn’t help Trump in his case for lower interest rates. Earlier he wrote:
GREAT JOBS NUMBERS, FAR GREATER THAN EXPECTED! The United States of America should be paying MUCH LESS on its Borrowings (BONDS!). We are again the strongest Country in the World, and should therefore be paying the LOWEST INTEREST RATE, by far. This would be an INTEREST COST SAVINGS OF AT LEAST ONE TRILLION DOLLARS PER YEAR – BALANCED BUDGET, PLUS. WOW! The Golden Age of America is upon us!!! President DJT
Just to correct the record, the US annual deficit is $1.8 trillion and even if the US was borrowing at 0% on every dollar of existing borrowing, it would still be at $0.8 trillion.
Ultimately, the bond market is the arbiter of which rates to pay. Today’s strong non-farm payrolls report cut the odds of a Fed rate cut in the first half of the year.
More details:
* Bid/Cover was 2.39x compared to a refunding average of 2.46x.
* Dealers took 13.4% vs. a 13.8% average.
* Directs claimed 22.1% vs. a 19.2% norm.
* Indirects were awarded 64.5% vs. an average of 67.0%.
This article was written by Adam Button at investinglive.com.