If the 'street' is required to own a large portion of this amount, it likes to have it on their terms, which usually results in higher yields and lower prices.
While this group is still a few years away from retirement, this plus the fact that Americans are living longer requires these funds to go out further on the yield curve.
The 30-year will be of particular interest to traders as it will be the first auction in almost 5 years.
It is important that he come across in an authoritative way so the markets see him as 'apolitical' and strong. If they sense that he can be maneuvered by Congress, then it could make the markets a bit nervous.
If it isn't in sync with the markets current leanings, it could get ugly in a hurry.
The enormity of the storm's effect is something that is unprecedented. If you look at towns where basically all the infrastructure was wiped out, then you have to evaluate those based on who's coming back to pay taxes and rebuild.
If this auction doesn't go well, you might want to take a long lunch then go home.
For the first time since August 2001, the Treasury will attempt to ease the pain for pension funds and insurance companies who need long assets to pay for a growing number of baby boomers.
Right now, the bond market appears to be suffering from indigestion.
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