10 Year Treasury Prices Without Much Fanfare

Tyler Durden's picture




 

The second bond auction of the week prices uneventfully, with the Treasury selling $21 billion of 10 Years at a yield of 2.043%, better than the 2.045% When Issued, and better than last month's 2.08%. Yet keep in mind that inbetween the March auction and today, the 10 year hit nearly 2.40%, so don't let the apparently stability give the impression that there is no volatility under the surface. Unlike the yield, the Bid To Cover dropped from last month's 3.24 to 3.08, which while week for recent auctions was just below the TTM average of 3.12. What is of note is that Dealers had to once again take down more than half the auction, or 50.5%, with the last time there was more than a 50% takedown being back in November 2011. Of the balance 11% went to Direct, and the remainder or 38.5% to Indirects. Overall, a quiet auction and now we just have tomorrow's $13 billion 30 Years to look forward to as total US debt approaches the $15.7 trillion milestone next on its way to the $16.3 trillion debt ceiling breach in 6 months. In the meantime enjoy fixed coupon bonds: for in one month, the FRN cometh.

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Wed, 04/11/2012 - 13:19 | 2334974 SheepDog-One
SheepDog-One's picture

Yep, keep on monetizing the debt Ben, while everyone pretends to not know whats really going on.

Wed, 04/11/2012 - 14:24 | 2335242 PayneNita
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my classmate's sister makes $62 hourly on the laptop. She has been unemployed for 5 months but last month her pay check was $13843 just working on the laptop for a few hours. Read more on this web site ....  http://bit.ly/FPPP3j

Wed, 04/11/2012 - 15:24 | 2335561 SheepDog-One
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Really? How much does she charge for a blowjob?

Wed, 04/11/2012 - 16:02 | 2335739 SemperFord
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a lot apparently...

Wed, 04/11/2012 - 13:19 | 2334976 Snakeeyes
Snakeeyes's picture

But look at Europe!!!!!!

http://confoundedinterest.wordpress.com/2012/04/11/wake-of-the-flood/

We are going to need an Ark to combat the Central Bank flooding of liquidity. And what happens when they try to reverse course?

Wed, 04/11/2012 - 13:22 | 2334980 vmromk
vmromk's picture

Lend the government money for 10 years at 2%, that's a no brainer.

Beverly Hills here I come.

Ponzi at its finest BABY !

Wed, 04/11/2012 - 13:26 | 2334998 Dr. Engali
Dr. Engali's picture

Let me see I'll buy $100,000 worth of 10 years today and have $5,000 in buying power when they mature... Sounds like a bargain.

Wed, 04/11/2012 - 13:31 | 2335020 SHEEPFUKKER
SHEEPFUKKER's picture

Floating Rate Note

Federal Reserve Note

Really, same acronym?  Too funny. 

Wed, 04/11/2012 - 15:05 | 2335476 slewie the pi-rat
slewie the pi-rat's picture

slewienomics has derived the master equation:

> FRN1 + styoopid =  FRN2  <

bong ho!

Wed, 04/11/2012 - 13:43 | 2335061 SAT 800
SAT 800's picture

Not sure where to post this; but yesterday I posted that I shorted the US Treasury Bond contract on the CME at 141-15; and today it opened there and basically did a belly flop; so that's going well, and I think it's still shortable today; it should have a few basis points to run. That's the June Contract.

Wed, 04/11/2012 - 13:48 | 2335080 Village Smithy
Village Smithy's picture

I can't imagine how these FRNs that may be introduced could be eased onto the market. My bet is that they will end up selling at a negative yield initially,and that will induce panic in the fixed coupon market.

Wed, 04/11/2012 - 13:50 | 2335088 Freebird
Freebird's picture

FRN - 1951 Bitchez

Wed, 04/11/2012 - 15:00 | 2335459 slewie the pi-rat
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everything's fiiine

the check are in the mail

have a great day!

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