Wednesday, February 8, 2012

The flight to safety continues to buoy fixed income.

The 10-year U.S. note auction came in at 2.02%, 1 basis point below the when-issued yield.

The bid-to-cover at 3.05 was a bit lighter than past auctions, and direct and indirect bidders were in line.

Greece will be resolved (in the fullness of time), but austerity and a lot of heavy lifting lies ahead for the eurozone. This malaise spells weaker-than-expected economic growth ... for years ahead.