What US Treasury bond auctions look like when foreign buyers & China not buying

Video: “Ugly": What US Treasury bond auctions look like when foreign buyers & China not buying 「醜陋」：當外國買家和中國不購買時，美國國債拍賣會是什麼樣子.

US government bond yields and borrowing costs blew higher, as two "ugly" auctions saw low interest from foreign institutions and central banks.

China is no longer a major buyer of US government paper, if at all. Japan in previous years was a large buyer on trade and capital account balancing, and with yen carry trades, all of which is being undone. The Federal Reserve is also a net seller, as it runs off its balance sheet $60 billion per month, and $25 billion monthly starting in July.

This means that US-based lenders will need to be found, which will certainly move prices lower, and yields up.

In this week's bond sales of 2-year and 5-year maturities, "indirects" (foreign central banks and large institutions) are sharply off levels seen in recent auctions, leaving the market to direct buyers (US institutions, banks, pension funds, and insurance companies) and bond dealers. Other internals performed poorly also, with bid-to-cover and closing tails that pushed yields sharply higher.

由於兩次「醜陋」的拍賣導致外國機構和央行的利率較低，美國政府債券收益率和借貸成本飆升。

中國不再是美國政府票據的主要買家（如果有的話）。前幾年，日本是貿易和資本帳平衡以及日圓套利交易的大買家，但所有這些都正在消失。 聯準會也是一個淨賣家，因為它每月從資產負債表上消耗 600 億美元，從 7 月開始每月消耗 250 億美元。

這意味著需要找到美國的貸款機構，這肯定會降低價格並提高收益率。

在本週的 2 年期和 5 年期債券銷售中，「間接」（外國央行和大型機構）大幅低於最近拍賣的水平，將市場留給了直接買家（美國機構、銀行、退休基金、和保險公司）和債券交易商。 其他內部因素也表現不佳，買回和尾尾交易導致殖利率大幅走高。