$34 Billion In 3 Year Auction Closes At Second Highest Bid To Cover In History, Lowest Yield

Tyler Durden's picture

The Treasury just auctioned off another $34 billion at what appears to be a record low yield of 0.844%, which incidentally came 1.8 bps tight to the When Issued. The Bid To Cover of 3.31 was the second highest in history, lower to just the 3.33 in November of 2009. Direct Bidders continue to take down a major portion of the auction, responsible for 15.8% of the take down, with Indirects taking down 40.5% and Indirects at 43.7%. 53.42% was allotted at the High Yield. Note the divergence between the ever decreasing yield and the ever increasing BTC on the chart below. Also notable was that the Fed's SOMA took down $2 billion of the auction. The 10 Year is now rallying as well on these strong results.