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$21 Billion 10 Year Reopening Closes At 3.735%, Record High Bid To Cover And Direct Bid Ratio, Record Low Primary Dealer Hit Rate
- Yields 3.735% vs. WI of 3.744% as of 1 PM
- Allotted at high 70.94%
- Bid To Cover 3.45 is a new record, previous at 2.67, previous reopening at 3.00
- Indirects 35.1% vs. Avg. 42.01% (Prev. 28.85%), hit ratio on Indirects 51.5%
- Direct Bidders surge to a record 17.5%, hit ratio on Directs 43%
- Primary dealer hit ratio at record low 19.9%
Some Market News commentary discussing the expectations on the 10 year reopening in advance of the auction, which may explain the various records in today's auction.
Wednesday's $21.0 billion 10-year note reopening sale is expected to be sponsored by short covering as well as real and
fast money demand, as specific foreign accounts may be at bay due to the issue's reopening status or its timing ahead of the Japanese fiscal year end, sources said. Given the downtick in prices, the auction should, in theory, be supported by short covering. Dealer desks confirmed that a portion of both Tuesday and Wednesday's downtick is linked to this week's auction trio set up.
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Ho-Hum, so what TD. Bonds stay in range until UE falls. It's in command by, you know who.
Lower price = higher demand. That's the way I read it.
Did the Treasury/FED, through JPM, hit the gold and silver markets from 11am to 12:30 PM to aid the 10 Yr auction?
that's what i'm thinking although with the 30 yr tomorrow, they could have taken care of both with today's move.
How many billion is the 30 year auction tomorrow?
$13B
THX
OK, here we go again, record monthly Federal Budget figure $220bln and we rally 'em up on weaker USD. Yeah baby! What the Frek!!!! URGH!!!
I one point i think on this site there was an estimate of quarterly stimulus spending. Does anyone have a source for this?
Doesn't seem to be any shortage of demand for bonds. When is the buyer's strike supposed to happen?
Right now. It's just the Fed is coming in as a scab.
Probably true... I wish we knew to what extent.
Given what we've seen, I don't see how anyone can trade on this data and make money. And you certainly can't come to any logical conclusions, because no one really knows the extent to which governement authorities are manipulating the auctions.
What we do know is that rates remain relatively low, and debt ridden entities, like Citigroup, are scrapping to raise as much equity-like capital before the Fed ends its reflation spree.
Other than that, there's just a whole lot of useless noice out there... and someone will be holding the bag.
Scabs often work to break the strike, especially when the govt protects them, but when the govt IS the scab, I'm not so sure. Wild time, wild times.
Can anyone give a "just for noobs" explanation, how its good or bad for Treasuries?
I ask humbly.
Thank you in advance.
And this means trillions of just printed dead presidents.
Other investors and household byers ))
Sorry a quick question from a beginner.
"Bidders surge to a record 17.5%, hit ratio on Directs 43%"
What is the difference between the 17.5% and the hit ratio of 43%?
Nice $20 vertical drop on gold right at noon wtf
learn the concept of carry/rolldown (steep curve = high forwards. High forwards can make dumb people look smart. Might rates go higher over the next 6 months to a year, probably, will they go up high enough to make up for lost carry/rolldown, a lot smaller probablity. Treasurys/duration are not that bad when you look at it in that context.
Supply of 10 year and beyond is at a 30 year low. Now
combine that info with a whiff of deflation for the next
couple of years as Benny tightens up
and raises short rates to what? Maybe 1%? They have
complete control.
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