Bond Yields Slide After Solid Start to Auction Week

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Important bullet points: – 3 year bonds highest yield at auction was 0.335% – demand was $2.69 for every $1 sold. Highest demand since June 2018 – 58 billion sold today in 3 year notes – most crucial day is tomorrow with 10 year notes (38B worth) – ends on Thursday with 30 years notes – key indicator for inflation was down to 2.38% from 2.5% last week. Still above the 2% target set by fed but they are confident they can manage inflation to their target.


And how much of this was bought by the fed?


Humm.. demand for bonds, even though “printer go brrrrr”. How will reddit deal with this cognitive dissonance? Maybe they will reevaluate?


What does the mean for housing interest rates?


I bought SQQQ yesterday right before the market closed considering the uncertainty on 10 year UST auction. First, US commercial banks won’t participate the auction this time because they don’t know whether FED will extend SLR exemption. Second, I think Japan is not just yet willing to buy 10 year UST because there are many more bonds right around the corner, and they are happy with the strong USD and weak Yen. What do you think? Should i sell SQQQ in premarket and buy whatever stonks right before the market opens? I assumed that the auction today won’t go well.