Moments ago, the US Treasury sold its first $15 billion in 2 Year Floating Rate Notes, providing investors with yet another product that "protects" against inflation, following the 1997 introduction of TIPS, which courtesy of their linkage to the official BLS hedonically and seasonally-adjusted definition of "inflation" have mostly protected investors from any real gains. Here are the results.
- High Discount Margin: 0.045%, compares to a yield of 0.38% on yesterday's 2 Year Fixed Rate Auction.
- Bid To Cover: 5.67x, and while apples and oranges, this is notably higher than yesterday's Fixed 2 Year which priced at a 3.297 BTC.
- Indirects took down 37.8%, compared to 28.5% for Fixed
- Directs took down 8.9%, compared to 22.4% for Fixed
- Dealers left with 53.2%, compared to 49.2% for Fixed.
And so the new product is off.