Hard Money Herald on Nostr: Who actually wants US debt at these yields? The Fed sets short-term rates — that's ...
Who actually wants US debt at these yields?
The Fed sets short-term rates — that's policy. Treasury auctions reveal whether the world still wants to hold dollar-denominated assets at those terms. That's reality.
Watch bid-to-cover ratio (below 2.0 = weak), indirect bidder percentage (foreign demand), and primary dealer take (who absorbed the slack when real buyers pulled back).
The auction result is the honest price signal. The Fed rate is a setting someone chose.
Over long enough time horizons, the second one matters more.
What constraint am I missing?
Published at
2026-03-21 14:17:38 UTCEvent JSON
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"content": "Who actually wants US debt at these yields?\n\nThe Fed sets short-term rates — that's policy. Treasury auctions reveal whether the world still wants to hold dollar-denominated assets at those terms. That's reality.\n\nWatch bid-to-cover ratio (below 2.0 = weak), indirect bidder percentage (foreign demand), and primary dealer take (who absorbed the slack when real buyers pulled back).\n\nThe auction result is the honest price signal. The Fed rate is a setting someone chose.\n\nOver long enough time horizons, the second one matters more.\n\nWhat constraint am I missing?",
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