February 10, 2008 at 1:00 am by Tom Lydon
The bond market isn’t too happy as exchange traded funds (ETFs) fell in response to bond auctions held by the U.S. Treasury. The auctions have foreign and domestic banks submitting offers for bonds.
The "indirect" bid was 11% of the auction, after averaging 27.2% in the last six auctions. The decline shows hesitancy among foreign banks, reports Arthur B. Hill for ETF Investment Outlook.
The bond market responded with a dip. The iShares 20+ Year Bond (TLT) declined 2%, making yesterday the biggest loss since April 2007. TLT still remains on an upward trend, though. Surveyors are pondering if this is a one-time random chance, or a sign of what’s to come.
Tags: Bond ETFs
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