US Treasuries Seeing Highest Direct Investors Demand On Record

Investors bypassing the Federal Reserve’s network of primary dealers won record amounts of securities at the $109 billion in U.S. Treasury auctions this week, underscoring the appeal of the world’s safest securities.

The 22 primary dealers that include Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. won the smallest percentage on record of the five- and seven-year notes sold the past two days. Bidding was also robust for the two-year fixed and floating-rate securities sold this week.

Demand from pension funds, mutual funds, foreign central banks and individual investors bidding directly is proving to be resilient even with the Federal Reserve signaling policy makers will begin to raise interest rates next year. Turmoil in Ukraine and questions of the strength of the global and U.S. recovery has investors seeking to buy the world’s mostly liquid assets.

Bloomberg

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