The end of this week’s refunding was the clunker along the bunch. The US ended up offering about 8 bp more than expected for the $14 bln in 30 year bonds. the yield on the long bond was 4.288%. With the economy looking like it is dragging itself up off the canvas investors seem not to want to lock up money at low yields when they could get a better deal (higher yield) in the months ahead.
Stocks have taken on a moderately easier tone in the wake of the auction results and are now down about 0.9%/ EUR/USD is just below 1.34 while cable is holding support at the 1.4980/90 area.
