Uncle Sam will be wading into the credit markets this week looking to borrow a total of $84 billion dollars.  He'll kick-off his four-part borrowing spree by warming up with today's $10 billion 10-year inflation-index security sale before really hitting his stride with tomorrow's $40 billion 3-year note auction followed by Wednesday's sale of a $21 billion stack of 10-year notes.  He'll wrap the whole thing up on Thursday with the sale of $13 billion worth of 30-year bonds.   

Investors remain unsure whether the economic recovery glass remain half-full - or half empty - so this big round of government supply will likely churn the credit market up a bit.  Even so, when the auction totals are finally tallied -- demand for each of these government debt offerings will probably prove to have been strong enough to support steady to perhaps fractionally lower mortgage interest rates.

 


Comments




Leave a Reply