, Columnist
The Bond Vigilantes Are Taking a Nap
Investors aren’t souring on US government debt, and that’s a worrying sign for fiscal conservatives.
Time out.
Photographer: Sam Yeh/AFP via Getty Images
The US Treasury’s auction on Wednesday of $39 billion in 10-year notes was disappointing.
It’s not that the sale of what is considered the global benchmark, helping determine borrowing costs for governments, businesses and consumers round the world, was greeted with subpar demand. Rather, demand by just about any measure was pretty good. And that is disappointing at a time when these auctions are being scrutinized perhaps more closely than ever for evidence that investors are hesitant to lend to the US government over concern about swelling debt and deficits.