On Thursday, the United States Treasury had a rough time trying to sell 7-year bonds. The yield paid jumped about 21 bps above expectations, leading to global mayhem and fears among bond traders of imminent “Armageddon”. That may have been partly the adrenalin talking, but the fact remains that it was as a terrible day of fundraising for the Treasury.
Intuitively, we all know this matters. But why? Mark Robinson says the first thing to remember is that on one level, it’s good news for just about everyone, except for bond traders and investors. Bond yields tend to . . .
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