$31 Billion 4 Week Bill Prices At 0.08%, Primary Dealer Participation At 2010 Record, As Indirects Flee

Tyler Durden's picture
  • 76.46% allotted at high 0.08%
  • Median rate at 0.07%, low rate no longer 0.000% - now 0.04%
  • WI was bid at 0.08% at 11:30 - auction came exactly at price expected
  • Bid to Cover: 4.34, last week at 3.82
  • Primary dealer bid: record $115.89 billion
  • Primary dealer hit ratio: 19.47%
  • Indirect hit ratio: 80%
  • Primary dealer take down at record high for 2010: 73.4%, compared to average 61.05%
  • Indirect take down at record low for 2010: 17.9%, compared to average 30.97%

Comparing the Primary Dealer and Indirect Participation demonstrates that PDs now singlehandedly control the 1 month Bill auction. Indirect take down has dropped to a 2010 low level at 17.9%, while PD take down has surged to a high of 73.4%.