Moments ago, the US Treasury sold its first $15 billion in 2 Year Floating Rate Notes [4], 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.
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