The Treasury benefited from a “coincidental” selloff in the stock market that was accompanied by a sharp drop in Treasury yields this morning, lasting, “coincidentally”, until the exact moment that the $42 billion two year note auction was completed. Once that little piece of work was accomplished, surprise, surprise, the stock market rallied and Treasury yields rose. Why, it was enough to make those conspiracy theorists think that the market is manipulated! Which it was, of course, today at least.
As I had recounted here for the past few weeks, I had thought that they’d actually be able to get the ball rolling a little earlier last week so that the Treasury could “get off cheap” with the massive amount of new debt it is floating, but this market has other ideas. It actually obeys the laws of supply and demand most of the time, and I suppose that a half day of manipulation is all the Working Group can muster. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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