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$12 Billion 30 Year Auction Closes At 4.009% High Yield, 2.37 Bid To Cover
- Yields 4.009% vs. Exp. 3.994%
- Bid To Cover 2.37 vs. Avg. 2.59 (Prev. 2.92)
- Indirects 34.5% vs. Avg. 48.03% (Prev. 46.7%)
- Indirect Bid To Cover: 1.51
- Allotted at high 27.53%
- 8.5% of accepted to directs
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The Fed has run out of cash? Interns slept at GS? Is the sky is starting to fall? >4% yield is a big change from the summer theme
No from what I can tell. The higher the long term bonds ramp up relative to the short term bonds the more likely it is that interest rates on a number of things will have to rise in the future. It has been ramping hard till they took the super short bonds up just a bit in interest.
The bond market always seems to know where the economy is heading. It's like it has access to our bank account information and tax returns. Oh wait. It TOTALLY does.
http://fixedincome.fidelity.com/fi/FIHistoricalYield
excellent link, thank you.
Evidently the market (bonds) doesn't like these results.
Has someone kept trace of the last driblets of above-board QE? What remains that can be used to relieve the dealers of this cusip?
$5.6B
It's one of the many, much appreciated things that Tyler does.
http://www.zerohedge.com/article/tiny-13-billion-pomo-done-enough-push-m...
Yes, the QE data is much appreciated, and the $5.6B could be completely gone anyday.
Yeah, only 20B a week of MBS POMO to go, every week until the end of time.
http://www.ny.frb.org/markets/mbs/
What did the lady say,"During the S&L crisis there were 1000 Federal indictments with only 3000 Savings and Loans." When will someone indict the writers of the MBS? Can a democracy do otherwise than reflect the values of its People?
What are the lyrics from that old tune?
Slip sliding away.
the nearer your destination...
Fucking thank god. I was bleeding cash on TBT calls.
I don't understand the slip sliding reference or the "bond market doesn't like these results" analysis. 30-yr. is trading in secondary at 3.98, the yield came in at essentially 4.01 versus an expected 4.00, and is trading way above par at 108.
What part of the results indicates the bond markets portend a dim future? I'm not being rhetorical, I simply can't read the tea leaves clearly, as I see no particluar doom in this report.
(BTW, thanks for keepin' 'em coming, TD)
30-Year
CURRENT PRICE/YIELD: 107-20 / 4.06
PRICE/YIELD CHANGE: -1-00 / .055
TIME: 13:53
Actually,
30-Year
CURRENT PRICE/YIELD: 107-04 / 4.08
PRICE/YIELD CHANGE: -1-16 / .082
TIME: 14:08
Uh, *gulp*, OIC. I started writing that post before the parabolic move.
OK, but wait, isn't this just an example of the Fed failing to tlak down the market enough in advance of this auction? Stocks are up, so wouldn't we expect treasuries to be down?
Am I being foolish to think that this drubbing of long bonds could be the moment the shorts have been waiting for?
Yes
why? negative real rates are what fuels all. remember the blowout in 5/07 when china stopped buying?
Dude, you DO know you're talking to a dog, don't you?
:>)
2.37 ratio? Were we not in the 3's last couple of months? Sounds like a weakening market
More meaningful than the bid to cover is the yield range as you may have a lot of PDs bidding that don't actually want to buy, a 184bp range seems like quite a lot.
http://seekingalpha.com/article/165593-bond-expert-thursday-wrap-things-...