The talk of the demise of the US Treasury market has been greatly exaggerated. The Treasury just auctioned $19 bln of 10-year notes at 3.365% with an amazing bid-to-cover ratio of 3.28 times. Granted this suggests the US economy is slowing and demand for fixed income is strong, it downplays any global jitters on holding US securities.
US equity markets are off thier lows in the wake of the strong auction.
