This from DReckoning... I didn't know the last three paragraphs...
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"The much hyped 10-year note auction Wednesday got a lukewarm reception from global buyers. As you can see, when the auction began at 1 p.m., investors quickly demanded a 4bps hike in the underlying yield - according to Morgan Stanley, the biggest markup at an auction's outset since May 2003.
"That helped bump the yield on the 10-year as high of 4.0%, its highest since October. Traders definitely made themselves heard - worries about debts and deficits in the US are back in the spotlight. But we wouldn't say it was in re-engage vigilante fashion. 4% is a point of historic buying support for the 10-year... it'll capture our interest again when that level is tested.
"And what a coincidence... the very day of this highly anticipated bond auction, Russia and Brazil both announced they'd soon be selling $20 billion in US Treasuries in exchange for IMF bonds.
"It's a smart move... each nation gets to diversify out of the dollar (the IMF will pay these bonds back with a basket of global monies) and send a clear signal to the US government. But their leaders can hide behind altruistic intentions: "This support is important to help end the international financial crisis," said Brazilian finance minister Guido Mantega. Since the money will go to the IMF's emergency fund, Brazil and Russia get to look like generous, globally cooperatave players... even if their only intention is to get the hell out of US Treasuries.
"Coupled with India and China's recent call to sell US bonds for IMF paper, that's $80 billion in US debt to be sold... just what the struggling bond market needs."
