Houston's Rate Sheet

Foreign appetite for US treasuries still strong

The 10-yr Treasury auction showed reasonably strong results, with foreign investors purchasing 41% of the issue. This alleviates fears of a possible pull back by foreign investors and central banks. Increased foreign investment in Treasury securities has allowed the US to maintain ridiculously low interest rates over the past several years.

The economic calendar for tomorrow contains an announcement on Jobless Claims, and the much anticipated 30-year Treasure bond auction. As stated in this report by MarketWatch.com, the Treasury has not auctioned off 30-year bonds since 2001. They are bringing back this security in order for corporations and governments to fund longer term obligations such as pensions.

posted by Vincent Biondillo @ 4:23 PM