Treasury Auction for June 9, 2009

Both events of the day, Geithner’s testimony and the 3-year Treasury auction went well. Mr. Geithner did not step off script and the 3-year auction was very well bid. Indirect bidder participation, an indication of foreign demand for US debt, was nearly 50% of the auction, up 10% from the last 3-year. High indirect bidder participation is a key factor in determining if and auction is good or bad. The US relies on foreign accounts to finance our deficits.