Indirect Takedown In Today's 2 Year Auction Lowest On Record
While generally a rather boring auction, with the 0.245% When Issued coming right on top of the final High Yield, in addition to bringing the US another $35 billion closer to the debt ceiling breach, today's 2 Year auction was remarkable for one more thing: the Indirect Take down of 17.7% was the smallest such award on record, which in turn confirms that last week's trend of collapsing Indirect interest is persisting. Has the Chinese boycott of US paper now moved to all foreigners? Forget the 2 month delayed TIC data, and keep an eye on the weekly updated Fed Custodial holding data - if we see a drop in this week's update for TSY paper, it may be time to start getting concerned.
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