Here are the Treasury Auctions that Yellen has run since the debt ceiling deal was passed.
The vast majority of the debt she has sold ($553B of $643B total) has been short duration (<= 1y) and relatively high rate (>= 4.85%).
This is what I expected, but I haven’t seen anyone talk about the details so was curious.
Weaker than expected demand?
They could have sold 2x-3x what they did for each auction if I understand the Tender amounts correctly, although possibly not at the rates they would have wanted.
I just think she’s managing cash flow over the short term. Quarterly tax payments will keep rolling in and she and the other commies in the Biden admin are convinced we’ll get back to ZIRP as soon as Powell is gone/forced to capitulate.
I’m sure they hope they can get back to selling 30y @ close to 0% to fund the forever wars and their communist dystopia.
Plus, giving fixed income investors access to high yield long duration treasuries means that lots of the ESG power that BlackRock has dries up.
Really hope SovX isn’t structured for donor / party political reasons. That would be pretty unsavoury state capture.
