The US is trying to spit out $235 Billion in debt this week to the bond market. The bond market has taken everything so far, but today the bid-to-cover ratio was 1.92. This is not a failure - anything over 1 means that all the debt sold. However, the Primary Dealers in the US must offer to swallow all debt issued, as a condition of being able to sell it - much like underwriting a share offering.
In short, anything less than 2 means that there was insufficient demand, and Primary Dealers were actually forced to swallow a portion of the debt. It's not that bad yet, but they should start running for the door. Dresdner Kleinwort fled a month ago.
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