The Bond Market Does Not Care About the Supercommittee

No debt deal in Washington, DC, who cares, give me my 2 yr US Treasury notes backed by the full faith and credit of the US government! Today’s bid to cover of 4.07 for $35b of notes was the highest seen since at least 1992 that I see records on. That is also well above the 12 month average of 3.39. Direct and indirect bidders took the most since Oct ’10. Flight to cash equivalents is of course the main driver, particularly with the European interbank lending markets getting more and more expensive by the day
---Peter Boockvar