Just a 0.375% yield on the 2 year note? No problem. Treasury continues to see record demand at bond auctions despite record low yields. The non-existence of inflation concerns and government default has buyers banging down the doors at Treasury. Today’s bid to cover ratio of 3.78 is the highest in several years. This data must be incredibly confusing for inflationistas and defaultistas who have been betting on higher yields and tanking demand for bonds for several years now.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.