The US Treasury is selling $40bn of two-year notes on Tuesday, $35bn of five-year bonds on Wednesday, and $25bn of seven-year debt on Thursday. While the US has not yet suffered the indignity of a failed auction – unlike Britain and Germany – traders are watching closely to see what share is being purchased by US government itself in pure "monetisation" of the deficit.
The markets received a dose of good news when it was reported that today抯 Treasury auction had gone well. The move in equities has been broad-based as evidenced by the number of advancing stocks to declining ones. That number is almost 4:1, while the up volume to down volume is below that.