Treasury Auctions Have Strong Demand as Investors Brace for Hawkish Fed
Dow Jones
3 hours ago
1255 ET - A Treasury auction of 1-year 11-month floating-rate notes draws strong demand, as investors seek protection against Fed hikes. The bid-to-cover ratio, a measure of investor demand, was 3.14, lower than last month's 3.37 but still robust. Indirect bidders, a group that includes foreign institutional buyers, acquired 67% of accepted competitive bids, another indicator of firm demand. An auction of 17-week T-bills also has strong markers. Treasury yields are mostly rising, as data show the U.S. economy still running hot, underpinning bets on a Fed hike in coming months.
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