This page has been archived and commenting is disabled.
$44 Billion 2 Year Auction Closes At 1.000%, 3.00 Bid To Cover, Indirects Drop, Directs Jump
- High Yield 1.000%, WI rate at 1:00 PM 0.993
- 56.32% allotted at high
- Bid To Cover 3.00 vs average 3.23 (3.33 previous)
- Indirect take down plunges to 34.78% from 53.56% in prior auction, last year average 44.55%
- Direct take down surges from 8.2% to 13.8%
Charting Bid To Cover and Direct/Indirect Take Downs:
»
- 3258 reads
- Printer-friendly version
- Send to friend
- advertisements -
Same old same old. This means nothing to those who (want to) believe things are getting better, those who believe in the people who believe things are getting better, and those who know shit flows downhill and pay day is Friday.
Now, when is the next blockbuster 3D movie coming out?
All I see are kisses and rainbows.
You forgot puppies
.
Ugly. 56% allotted at high.
It appears China may be scaling back its purchases. The direct will probably take an impressive jump on the 5 & 7 years due to the Fed ensuring the auction is not failed however the indirect plunging should be concerning to everyone back in D.C. trying to keep the printer throwing temporary solutions that are really larger problems wrapped in 100 bills at our already elephant size problem.
Right on but these are problems this country has learned to live with. There's no possibilty IMO of any kind of meaningful failure that would tackle the problem other than perhaps war. War would cause a spending climax and give this country something to fight for. Markets are now only one-sided (BUY) as is our government (Liberal).
Is there a post/article on ZH somewhere that interprets these results for those not schooled in the machinations of Treasury auctions: what is bid to cover? what are direct vs. indirect, who are they and what does their relative participation mean, etc? Direct + Indirect adds up to less than 100%, who is the balance?
Thanks.
Bid-to-cover ratio: In a Treasury auction, the number of bids received divided by the number of bids accepted. Rather than the number of bids, sometimes the total amount of the bids is used instead. The higher the ratio, the higher the demand.
The easiest number to fudge.
http://seekingalpha.com/article/190362-something-very-strange-is-happeni...
The indirect bidders are considered a proxy for foreign Treasury buyers, such as the erstwhile purchases by the People's Republic of China, noted dictatorship and America's indispensable payday lender. The falling participation by indirects is ominous, of course. The other category is Primary Dealers, the core group of Fed BFFs which must by the terms of the charter shill at the auctions. Sometimes, if bonuses have not eaten up too much of their capital, they will use some the fantastic loot bestowed upon them by the Fed in taking toxic sludge off their books in exchange for marketable (for now) Treasuries and lend it back to the Fed, thus stealing more money from the American people by playing a spread with money which the American people gave them to stay in business.
Much thanks. Last question: Directs took dow 14% + Indirects took down 35%; what category of accounts took down the other 50% of the placement?
Primary dealers (who, by their very nature, must bid competitively at every auction).
Lots of FED buying today...hmmmm
How did the 4 week do? DOn't have time to check treasury direct. Or is that tomorrow?
WHO IS BUYING THIS CRAP? I DONT GET IT.
ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. windows vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers