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