Making a Case for Bonds
I have counseled readers many times that government bond auctions tend to be overrated, especially in troubled European countries where demand tends to be dominated by local banks. But here in the U.S., the auctions can give us some indication as to fundamental demand for Treasuries. And by that measure, bonds are still looking strong.
First, let's remember that the investors who play in auctions tend to be very large accounts, so auction participation tends to reflect the needs of these mega accounts: foreign central banks, sovereign wealth funds, big insurance companies, mutual funds, and the like....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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