Treasury Issues Fresh Batch Of 10 Year Bonds

Tyler Durden's picture

The first day of the "next 4 years" is starting in a very auspicious fashion. First, the market crashes. Then, a major blue chip company, Boeing, just announced it would cut 30% of management jobs from 2010 levels. And finally, the US Treasury just added $24 billion in debt, or enough to fund Greece for over one year, sending the total debt load (the US is now at 103% debt/GDP) ever closer to the debt ceiling breaching $16.4 trillion. But don't worry: over the next 4 years, the US government will add another $6-8 trillion in debt, so those who didn't get their allocation in this auction will have more than enough opportunity. As for this one, the yield was 1.68%, the lowest since August (but, but, what happened to the great rotation out of bonds and into stocks?), the Bid to Cover was 2.59, the lowest since last November and only higher compared to August' 2.49. And finally, the take down breakdown was uneventful: 46.2% for Dealers (to be promptly flipped back to the Fed - keep track of CUSIP 912828TY6), 39.7% for Indirects, or below the 12 TTM average of 41.28%, and Directs got 14.1%, also below the average, and lower than last month's 22.9%. As noted: uneventful. As also noted: there will be many, many more such auctions in the future, so those who wish to convert one paper into another will have ample opportunity to do so.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
disabledvet's picture

Slight adjustment with an article I agree with: "ALL assets stopped rising together for a day" not "equities and commodities sold of while Treasuries were bought in a panic trade again." the former has been the norm now for three years running. Basically "buy everything." I agree "we migh be at an infection point...

AgShaman's picture

It was an expensive "Selection" this year

The slaves must be "promised" to pay more

Madcow's picture

Treasuries will collapse - yes - but AFTER everything else collapses.  Still, cash-in-mattress and gold-buried-in-yard will outperform all else - 


youngman's picture

I have to think foreigners should be getting a little itchy holding our junk....I think they should be buying gold and taking it home...just for a little protection.....and watch from the sidelines.....the Chinese..Japonese....I have no idea why they own it either....I would be dumping it..

Shizzmoney's picture

When one buys US Treasury Paper, does it come wrapped in a bushel of Tulips?

Yen Cross's picture

What about those 3-5's earlier this week?   The basis points are rising on S/T debt.

  Where is that EKM, beautiful mind?  Direct and indirect please? Fed.Gov is getting old<