3/9/10

Today we start yet another Treasury auction, with the usual worries about financing our increasing debt. Who will buy the $74 billion? The usual suspects come to mind, and let’s hope that demand is strong because otherwise we could see all rates shoot up in a hurry. Given that there isn’t much data until the end of the week (weekly unemployment claims on Thursday and February retail sales on Friday), these auctions will be important. Mortgage prices are roughly the same this morning.