10 Year Prices At Record Low 2.14% As Direct Takedown Surges To All Time High 31.7%, Indirects Plunge

Tyler Durden's picture

There were many odd things about today's $24 billion 10 Year bond auction, which just closed at an all time low yield of 2.14% (down from 2.92% in July), the pricing being just one of them. That this was a very favorable result is a given judging by the yield just following the auction which has since tumbled to the lowest ever except for yesterday's dramatic collapse in yields. At this point, courtesy of the Fed's genocidal policy, it is very possible that the 10 year could drop below 2% shortly. What was probably just as interesting about the auction was the unprecedented surge in Direct Bidder take down which soared from 13.9% to a record high 31.7%, a number not seen since the last time the world was imploding or back in May 2009, when it hit the then high 25%. The reason why Direct had to step in? A massive collapse in the Indirect Bid, plunging from 42% to 35%, the lowest since February 2010. Either the Fed's proxy account finally came out of the closet or China is now very confused and telegraphing a plunge in Indirect Bidding even as it buys up ever more via its London accounts. Either way, the first 10 Year auction since the downgrade passed with stunning success: congratulations, cherry popped.

Directs -nuf said: