$21 Billion 10 Year Closes At 3.119%, 3.09 Bid To Cover, Primary Dealers Take Down 48.6%

The second of this week's coupon auctions closed, with the Treasury placing $21 billion of 10 year Bonds at 3.119% at a 3.09 Bid To Cover. It was 77.69% allotted at the high yield. The Average Bid To Cover on the 10 year has been 3.21, and the last one came in at 3.24. Indirect Bidders were roughly in line with historical, coming in at 41.7 compared to 40% previously and 36.35% on average. Direct Bidders and Primary Dealers came in at 9.8% and 48.6%, respectively; this compares to 13.5% and 46.4% previously. Due to technical problems we will not have the monthly chart breaking down the auctions until later in the day. Incidentally with the 10 Year still trading just north of 3%, the equity-bond disconnect continues to diverge, with the 10 Year continuing to impy materially lower equity levels.

Comments

[SayTabserb]

The era of Absurdist Financing has arrived.  Ionesco for Fed Chairman!

[Mr Lennon Hendrix]

Na, this guy!

"As my plastic surgeon said, 'If you gotta go, go with a smile!'"

"joker parade".....Prince - "Trust":

http://www.youtube.com/watch?v=Svf2aWr0hfI

[doolittlegeorge]

interesting--and as much as i'd like to see rates explode higher Planet Peon simply won't allow it.  I guess the world really does prefer our disorder.  Now if the "disorder" could only be defined....

[Vampyroteuthis ...]

The lower equity levels will come soon enough. First, the squid has to take it share of other people's money.

-The world is a vampire...

[Mr Lennon Hendrix]

"Bullshit fakers, enchanted kingdoms
The fashion victims chew their charcoal teeth"

Smashing Pumpkins - Zero:

http://www.youtube.com/watch?v=HBm_fuIeQL0

[Nolsgrad]

wrong song, you meant Bullet With Butterfly Wings

http://www.youtube.com/watch?v=Ktff3bZpux8

[poopdeville]

Doesn't "lower equity yields" correspond to "higher bond yields"?  Why should we suppose a well diversified portfolio would fare worse than the public debt, which we already know faces enormous inflation risk?

In short, bonds ares are too expensive relative to the risk they carry.

[Mr Lennon Hendrix]

Roll bonds short term 'till the wheels fall off.  Other than that, your long bond is PLATINUM.  Medium is GOLD.  Short is SILVER.

"So I'ma ride til the wheels fall off
while all the rest get weak and go soft
Your petite style, can get you beat down
My heat's loud, have you huggin on the street now"

Xzibit-Best Of Things:

http://www.youtube.com/watch?v=gTgf57JhQQA

[Bankster T Cubed]

a collapsing equity market will allow for easy unload of those notes by the primary dealer criminal scumbags

[AssFire]

C'mon household sector!!

[Remington IV]

awful results

[ForeKingHail]

@Tyler,
Do you have a yield/bid2cover scatter plot?(historical)

[herry]

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