Treasury Market Exhales After Auction Results Allay Worst Fears - BNN Bloomberg
The Treasury Department's auction of five-year notes went off without a hitch Wednesday, allaying concerns spurred by the Federal Reserve's decision last week to let lapse a regulatory exemption that had let banks scoop up more U.S. debt.
It was arguably the first big test since the Fed's announcement that big banks would again have to factor Treasuries into their so-called supplementary leverage ratios, or SLR. And the timing was perfect for calming worries about Thursday's seven-year auction. Last month's sale of the same tenor was a disaster, fueling a massive spike in U.S. yields.
