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$24 Billion 10 Year Auction Closes At 3rd Lowest Yield In History, 3.
Today's task before the Fed and the Direct bidders was the clean, calm digestion of $24 billion in 10 years. And as expected, this passed without a glitch at a 2.73% high yield, the third lowest yield in history, following just auctions in December 2008 and January 2009. Yet unlike yesterday's 3 Year auction, which also posted the highest Bid To Cover in history, today's BTC was not as strong as in the previous two auctions. Is the yield on the 10 Year becoming so low as to not be attractive for the Primary Dealers? Indeed, the takedown by primary dealers dropped to 43.6% from 48.6%, and an average 46% in 2010. Direct bidders accounted for 10.6% of the auction, while Indirects took the biggest portion of the auction since November 2009, or 45.8%. It also appears the real yield on the auction would have been lower as the allotted at high was only 10.57%, while the median yield was even lower, or 2.669%, suggesting interest in the Dutch auction was even higher than demonstrated by the end result. Yet all eyes are focused on tomorrow's 30 Year: as the 10 Year is now actively to be gobbled by the Fed, the 30 Year is the only orphan left in the curve without the Fed's explicit purchasing, and as such, surprises are not unlikely.
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...2.73% high yield, the third highest yield in history, following just auctions in December 2008 and January 2009.
Don't you mean third lowest in history?
Corrected
We get the first sched @ 3pm today and will see what's on deck for the first POMO next Tues. Guess is there will be plenty of 3's and not too many 10's.
The post @ 1337 makes me smile
So I guess this will mysteriously rally the market off the lows. Did anyone really think this selloff was going to stick?
KING DOLLAR BITCHEZ!
World is swamped with debt. Where all of the $ is comming from to buy these treasuries?
I bet somehow/secretley the FED Reserve directly or indirectly printing money the money finds its way to the treasury auctions, but I have no proof of that.
I do not get it.
no you get it, but it isn't a secret and is published in many news sources
http://www.reuters.com/article/idUSN1122372520100811
duplicate
What treasury bubble? I can't wait to watch the Federal Governments ARM re-adjust. That should be interesting.
Is it hard to make vodka by yourself?
No. Drinking it by yourself is the problem.
i haven't found any problem Rocky y y y Racoon. it has been working for me about 2 years now. helped me break my addition. even a doc recommended alcohol instead ambien, cause it is cheaper. V
NY Fed says to buy about USD 18bln of treasuries in nine operations from Aug. 17 thought Sept. 13
notice they refuse to claim which they plan to buy? Can't spook people now can we?
No more proof of a coming deflation avalanche needed. That's it folks. Buy gold because it is money and money performs well in a deflationary environment. Or hookers
DOW/SP500 daily charts are now bearish.
So the downtrend I first mentioned in early May this year, can now resume.
http://stockmarket618.wordpress.com