Mystery Bidders Boosted Demand at Blowout Treasury Note Sale
- U.S. doesn’t identify category of miscellaneous investors
- Bond-market strategists see clues to buyers in Fed data
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Who were those masked Treasuries buyers?
A mystery came with the Treasury Department’s allotment data for its blockbuster $26 billion two-year auction on May 24 that left primary dealers with the lowest award on record. For just the second time in data going back to 2009, a catch-all category of miscellaneous bidders bought more than $2 billion of two-year debt at auction. Any bid from that segment is relatively rare -- purchasers labeled “other” haven’t bought any two-year debt at all in 41 of the past 80 sales.