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How to Read a Treasury Bond Auction
The U.S. government raises funds by selling debt securities at Treasury auctions. These are short-term Treasury bills (with maturities of four weeks to 52 weeks), medium-term Treasury notes (that have maturities of 2, 3, 5, 7, or 10 years) and long-term Treasury bonds (that mature in 20 or 30 years). Treasury auctions have a significant impact on interest rates and the economy, so bond traders should know how to read and analyze them. Let’s examine some Treasury auction results and see how to use them to gain insight into economic conditions and trading opportunities. The auction schedule The U.S. Treasury ... (full story)