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Unremarkable 7 Year Auction Prices Precisely As Expected

Tyler Durden's picture




 

Unlike yesterday's weak 5 year bond auction, today's auction of $29 billion in 7 Years was completely unremarkable. The bond priced at 2.854%, in line with the When Issued, and came at a 2.86 Print To Cover, pretty much unchanged from the previous 2 auctions. Directs once again came weak at 4.48%, the lowest since October 2009, which is yet another confirmation of our view that February UK purchases will be drop, and whether that's China, Petrodollars or shadow Fed purchasing, the "UK" February total will barely budge. Indirects came in line with the average at 49.66%, while Primary Dealers were at 45.86%, the highest since November. But altogether considering some of the weirdness we have seen in the primary issuance market, this was a perfectly normal tip of the belly auction.

 

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Thu, 02/24/2011 - 14:16 | 993863 lunaticfringe
lunaticfringe's picture

Tyler...off topic here. But excellent story. SEC General Counsel sneaks out the back door after it is finally disclosed his family was invested with Madoff. What if anything in the world screams CONFLICT OF INTEREST?? Fuckers. http://thecivillibertarian.blogspot.com/2011/02/welcome-to-herd-more-pro...

Thu, 02/24/2011 - 14:18 | 993869 Cleanclog
Cleanclog's picture

I don't know why I continue to be able to be surprised - I thought I had become completely cynical and paranoid, but I am actually surprised about the EC GC w/ Madoff investment.

7 yr Treas auction went well enough. Not acting like a flight to quality nor a step away from US Treas. Curious after yesterday's 5 year.

Thu, 02/24/2011 - 15:06 | 994090 Nepenthe
Nepenthe's picture

Al Jazeera editorial-

US Economy One big ponzi

http://bit.ly/gB778f

Thu, 02/24/2011 - 18:14 | 994929 chopper read
chopper read's picture

here is another good one if anyone missed it:

"My job in psy-ops is to play with people’s heads, to get the enemy to behave the way we want them to behave," says Lt. Colonel Michael Holmes, who received an official reprimand after bucking orders. "I’m prohibited from doing that to our own people. When you ask me to try to use these skills on senators and congressman, you’re crossing a line."

 http://www.commondreams.org/headline/2011/02/24-4

Thu, 02/24/2011 - 14:55 | 994022 chinaboy
chinaboy's picture

Looks like Chinese government officials do not want to expose themselves too much before the communist party meeting next month.

It does not mean the policy is going to change. We don't konw yet.

It means  these guys don't want to over expose before the policy is confirmed.

Last time when they boasted that they made money on Agency bonds. Many commentators came out to critcize. So they know how popular they are.

 

Thu, 02/24/2011 - 14:54 | 994028 tmosley
tmosley's picture

When I see something "normal" in these times, it gives me pause.  If this "normalness" continues, best start looking for the "trick".

Thu, 02/24/2011 - 15:05 | 994077 spanish inquisition
spanish inquisition's picture

What ever it takes to keep setting technical levels.

Thu, 02/24/2011 - 16:39 | 994565 topcallingtroll
topcallingtroll's picture

As a reader mentioned who works at a major brokerage a few weeks ago everyone dislikes treasuries. It is not a contrarian position. TLT etf has had a little bounce. I cant see treasuries breaking down quickly with so much negative sentiment.

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