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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SheepDog-One's picture

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

PayneNita's picture

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SheepDog-One's picture

Really? How much does she charge for a blowjob?

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?

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 !

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.

SHEEPFUKKER's picture

Floating Rate Note

Federal Reserve Note

Really, same acronym?  Too funny. 

slewie the pi-rat's picture

slewienomics has derived the master equation:

> FRN1 + styoopid =  FRN2  <

bong ho!

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.

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.

Freebird's picture

FRN - 1951 Bitchez

slewie the pi-rat's picture

everything's fiiine

the check are in the mail

have a great day!