VIDEO 7 Year US Treasury Auction may be a sign of trouble for the Fed

Federal reserve USD $100 note

The 7 Year US Treasury Action went horrible today.  The bid to cover was 2.045, the lowest on record!  In addition, Indirect bids fell to 38.06%.  

As a result of the weak auction, bonds prices across the board fell and yields spiked.  The closely watched 10-year yield spiked through 1.5 % on the results for the first time since February 21st, 2020 to a current high of 1.544%.  

What does this mean for the US economy?  It means the Fed is in trouble.  The bond market has been telling us this for a while now, though Powell continues to say everything is fine. 

Learn more about commodity trading opportunities.


 
Related tags: Bonds Treasuries Powell Fed

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar