Interest Rate Chronicles

This is a direct quote from a Yahoo finance article:
"The government sold $19 billion in 10-year Treasury notes in a relatively weak auction. There were plenty of bidders, but the government had to lure them in with a higher yield than the market had anticipated. The yield on the benchmark 10-year Treasury note rose for the fourth time in five days, jumping to 3.95 percent from 3.86 percent late Tuesday."

The concern is that because the government must sell trillions in Treasuries in the coming months and years, the weak auction this early in the game could foretell that rates will rise faster than expected.

The moral of the story - sharpen your ALM pencil!