Thursday, August 6, 2009
10 Year Treasury Note ~ US Dollar ~ S&P 500
The yield on the 10-Year hits 3.75, as the US Treasury announces $75 Billion Quarterly Refunding.
The US Treasury announced that it will auction $37 billion 3-Year notes next Tuesday, $23 billion 10-Year notes on Wednesday and $15 billion 30-Year bonds on Thursday.
Yesterday Freddie Mac priced $4.5 billion 3-Year Reference Notes at 37.5 basis points above the 3-Year Treasury. This incremental cost is a tax on Americans, as Fannie and Freddie remain in Conservatorship.
Look at the daily chart for the yield on the 10-Year($TNX). Note the spike down in yield in March. That’s when the Federal Reserve announced that it would be buying Treasuries in a Quantitative Easing measure.
*click on chart to expand image