Definition
How the government sells new Treasuries. Bidders set the interest rate.
The story
Every week the government needs to borrow, so it holds auctions. If lots of buyers show up, the government can borrow cheaply. If demand is weak, it has to offer a higher yield to sell everything, and that can push yields up across the market.
Why markets watch it
A weak auction can lift yields and weigh on stocks.
Connects to
Treasury bills, notes and bondsTreasury yieldQuarterly refundingCoupon
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms