Offers to buy totaled 2.62 times the amount of debt sold, below the average of 2.77 times at the previous six auctions. Foreign central banks and other indirect bidders bought 44.2% of the TIPS on offer, and direct bidders such as domestic money managers another 16.1%. The amount taken by indirect bidders is 3.1% above the recent average, while direct bidders took 2.3% less.
With borrowing costs this low, there are plenty of people who wonder why the federal government is not borrowing more and using the proceeds to invest in rejuvenating the US economy by spending while everyone else is saving. The answer to that question is left as an exercise for the reader.
Paul Ausick
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