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Selling In 30 Year Accelerates Post Weak Auction Carried 21.8% By Direct Bidders
The $16 billion 30 Year bond just came in at 4.49%, a 3 bps tail to WI. As a result the actual price is now dropping with the yield just pushing to 4.51%, a 9 bps intraday move. The actual auction came at a subdued 2.60 bid to cover, compared to the average of 2.62, and the last auction at 2.73. The reason why the auction was even passably successful: Direct Bidders once again carried it, this time taking down 21.8%, well more than double the historical average, although markedly less than the last auction where if it hadn't been for Directs we could have had something approaching the first failed auction. The primary dealer hit rate was 26.8%.
Here is the actual trading action before and after the 1 PM auction.
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What is the best way to track direct bidders over time? Is there a function on bloomberg?
Thanks
Blackrock and Pimco to the rescue...
Pension funds to the rescue
401k to the rescue.
With all the bad news coming all at once, ZH should install a "Ta-ta-taaaaa!!!!" sound effect button a-la Peter Griffin.
So let me see - the FED is basically buying nearly half the issuance, directly as the fabled "Direct Bidder" and indirectly through the Primary Dealers, who are doing little more than cycling Benron's Bucks through the Treasury spin cycle.
Do I have that about right?
Those of you who do not understand direct bidding, refer to this New York Fed page:
http://www.newyorkfed.org/research/current_issues/ci13-1/ci13-1.html
All the info you need is there. And read this on yesterday's auction:
http://www.investingcontrarian.com/global/record-us-treasury-auction-3-27-bidcover-genuine-demand/
thx
With all the rules no longer followed, I am confused to how this makes any difference. Fed secrecy is ensured by TPTB so full monetization of debt is possible. If the past 3 years has taught us anything, zero oversight equals zero accountability. All auctions reduced to a journal entry on some spreadsheet somewhere on bb's laptop.
Market rebounding nicely. Raining in Chicago, break between meetings. I'm hearing nothing but positive news here regarding strength in retail. Some say it's even better than 2006-7.
Claims moving avg. is looking good. Tack on great earnings from Kohl's, Urban and CSCO and that certainly supports what I'm hearing here. Nice to see it at ground level taking hold.
Hey its Hairy "Dumb Money" Wanger everybody!
Thanks for the head's up Harry... (your my new ES short signal...)
When you get a chance Harry, what is your next price support level in the S&P's ?
Some say it's even better than 2006-7.
Uh, sure.
What color is the sky in your world, Harry?
I will answer for him. It is emerald green.
Heck no. There's a permanent rainbow overhead and a pot 'o gold at the end.
40 years ago today, a young AbbyJosephCohen met an equally young Harry Wanger in a bar off Wall Street. They fornicated in the back restroom.
Their prodigy can be seen every day on CNBC. Dennis Kneale.
This Harry guy is a fresh new addition to ZH, the planted moron-orc fluffer!
I didn't know Obama Administration morons officials had started trolling ZH.
They are trolling on almost every message board around now. You name it, they sign up and fire away.
You can tell who there are by the drool stains on their shirts.
@HW
Retail is a broad category. What "ground level" are you on? Debt consolidation business? More details or I'm calling BS. Specific industry. Also, we haven't seen an improvement in weekly claims commensurate with the move in equities and the continuing claims are still up.
H Wanger is like herpes. Just when you thought they were gone, BAM, another annoying post(outbreak)!
Well, you have fun with that Harry, and enjoy the trip to S&P 1050. Maybe you check back in while things are selling off this time, instead of waiting for the dead-cat bounce?
Are you talking about a different Kohl's and Urban? Must be a different retail industry you're talking about as well.
http://www.marketwatch.com/story/us-stocks-lapse-more-amid-retail-disappointment-2010-05-13
you are one stupid sack of shit sir. please now tell me how the massive personal income tax receipts YoY is bullish.
Can Direct Bidder's identities ever be learned in any way? For ex, by Court order, etc.. or is this stuff scrubbed from start to finish? I need to learn how this auction functions. I need pictures
Nope. Better kept secret than our nuke secrets.
Ms. Drury is killing it! She runs these hog talkers up and over. I wonder why? Mandy, who do you work for?
"The Euro broke and gold is up....no confidence....They want to devalue the Euro?" "What I'm saying is there is a lack of confidence...." Yes there is Amanda, yes there is. "So the Euro will be broken up in the next few months???"
Mandy, will you please host every show on cnbc? Please?
http://www.cnbc.com/id/37126775/
Amanda is at least pretty cute to offset the retardation, and has a nice accent!
Is it time for another plunge in the stock market already?
ES is seeing some steady selling pressure this afternoon.
Turbo timmy better fire up the printing press before this gets out of hand.
For Harry Wanger:
Vis-a-vis your comment about retail environment in Chicago. I live in the middle of Lincoln Park and retail is much, much worse than 12-18 months ago.
How bad was it 12-18 months ago?
Dang, remember that computer bug that took down the DOW last week - it looks like its back again!
Don't worry, tomorrow morning they will simply bust any of this afternoon's trades they don't like.
Treasury desk: "Trying to issue out longer on the curve before....ohhh shit, too late..."