$33 Billion 3 Year Auction Comes At Record Low Yield Of 0.79%, Primary Dealer Takedown Highest Since May 2009

Tyler Durden's picture

The 3 Year came in at a fresh record low high yield of 0.79% (25.34% allotted at the high). The Bid To Cover came at 3.213, one of the highest in recent years, although in line with the prior several auctions. And since Direct Bidders dropped to the lowest since April 2010, at 11.7%, and Indirects were in line at 42.4%, the Primary Dealers once again had to step in and take down the bulk of the Auction, being allotted 45.9% of the $33 billion issue, which was the highest since the 56.6% in May 2009. Yet the Indirect participation is indicative that the 3 Year is where the foreigners are happy putting money in, and stretching all the way to the 10 Year, in their ongoing Fed frontrunning attempts.

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Clayton Bigsby's picture

What's next?  Sgt. Slaughter running a meth lab?  Where have all my heroes gone????

johngaltfla's picture

Translation? Watch the birdie.


Let's see how much of this auction is purchased by the Fed in the next 12 weeks. My bet is on exactly or damned close to the same amount the PD's took down.

Bryan's picture

So... when are they going to start just printing money and sending it right down the chute into the Fed's bailout account?  Forget even letting foreigners in the auctions any more... it's irrelevant.

plocequ1's picture

Can someone Wake me up when this Money printing will not have an effect on the stock market anymore? It really is getting annoying watching everyone saying how bad monetizing is and then the fed just turns around and bitch slaps them.

system failure's picture

If one advances confidently in the direction of his dreams; and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours....Henry David Thoreau


jbc77's picture

These auctions are just more bullshit.

papaswamp's picture

You know there are 3 month CDs with better rates...

mark mchugh's picture

I think Mike Pento just made Erin Burnett cry during the commercial break...

Grand Supercycle's picture

DOW/S&P500/FTSE/EURO short signal continues :