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10 Year Prices At 2.05%: Highest Yield Since March 2012

Tyler Durden's picture





 

It was well-known that today's 10 Year auction would price somewhere north of 2.00%, for the first 2%+ print since April of 2012, it just wasn't known where. Sure enough, moments ago the US Treasury priced $24 billion in 10 Year paper at a high yield of 2.046% (38.76% allotted at high), the highest since last March when we had a 2.076% 10 Year auction (and a carbon copy environment in which every pundit was screaming about a great rotation out of bonds), only to see the April and especially May auction tumble in yield when Europe once again became unfixed. What was notable about today's auction is that it tailed the When Issued modestly, which was bid 2.039% at 1 pm, implying a 0.7 bps tail. Also notable: the Bid to Cover dropped to 2.68, below January's 2.83, and well below the 12 month TTM of 2.99. Dealers took down 47.7% of the auction, Directs as has recently been the case ended up with a sizable 24.2%, while Indirects took only 28% of the auction, higher than the December 24.2%, yet worse than all other auctions going back all the way to April 2009. For those confused - don't be - we have been here in 2012, and 2011, and 2010, when risk assets were surging, and when yields were sliding, only to see a modest subsequent pick up in inflation, mostly in China, but certainly Europe, at which point the global liquidity glut ceased and the economy (if not the centrally-planned market) resumed on its downward glideslope.

 


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Wed, 02/13/2013 - 14:22 | Link to Comment TheCanadianAustrian
TheCanadianAustrian's picture

So what? It was a bubble at 4%.

Wed, 02/13/2013 - 16:53 | Link to Comment economics9698
economics9698's picture

Wait a few months, it will get real interesting.

Wed, 02/13/2013 - 14:23 | Link to Comment Conman
Conman's picture

Rotation!

Wed, 02/13/2013 - 14:26 | Link to Comment MFLTucson
MFLTucson's picture

Just begining my friends, to get anyone to buy this junk the yields will have to cover the risk!  And paper Gold down again as the Criminal Cock Suckers continue the manipulation!

Wed, 02/13/2013 - 14:48 | Link to Comment eclectic syncretist
eclectic syncretist's picture

What would happen without the $85,000,000,000 the Fed is issuing every month to help keep this rate down?

Wed, 02/13/2013 - 15:11 | Link to Comment forwardho
forwardho's picture

Annihilation Jim, complete and total annihilation.

Wed, 02/13/2013 - 15:18 | Link to Comment LawsofPhysics
LawsofPhysics's picture

people would certainly start dealing with one another in a very personal way...

Wed, 02/13/2013 - 15:21 | Link to Comment Al Huxley
Al Huxley's picture

Gold down?  A lousy 10 fucking bucks!  Jamie better have a word with the traders and tell them to lay off the goat fellating and hobo sodomizing, and get their lazy asses back to the task at hand.  Hell, 10 bucks off isn't even worth a trip to the coin store.

Wed, 02/13/2013 - 14:26 | Link to Comment LongSoupLine
LongSoupLine's picture

In depth analysis on a bucket of fucking hot steaming shit, won't fucking change the fact that it's still only a bucket of hot steaming shit.

 

It's all fucking manipulated by the dick eating Fed and Dept of Debt, formally known as Treasury.

 

Fuck you Bernanke and Lew.  assholes.

Wed, 02/13/2013 - 14:27 | Link to Comment davidsmith
davidsmith's picture

This is the beginning of the "new" recession: you know, the one even the U.S. Government can't deny.  It will be HORRENDOUS.  Already a distinct slowdown in SF Bay Area.

Wed, 02/13/2013 - 14:59 | Link to Comment azzhatter
azzhatter's picture

Yep, my business is tanking the last 45 days. Jan and Feb always slow but this year down 43% over last year

Wed, 02/13/2013 - 15:04 | Link to Comment IndicaTive
IndicaTive's picture

Our only new business in the last six months has come as a result of two of our competitors going out of business.

Wed, 02/13/2013 - 14:31 | Link to Comment Archetype
Archetype's picture

Stock market is beyond retard, coked out rabies honey badger. One wonders how much stupid pig money theres out there. Oh right - infinate...

Wed, 02/13/2013 - 14:47 | Link to Comment waterwitch
waterwitch's picture

What if there was an auction and nobody showed up?

Wed, 02/13/2013 - 14:51 | Link to Comment DrDinkus
DrDinkus's picture

the dealers have to show up. part of the game.

Wed, 02/13/2013 - 15:03 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Calm down we have a 2% contraction with 6%, we are growing 4% in nominal GDP targeting. What are you complaining about?

Wed, 02/13/2013 - 15:05 | Link to Comment davidsmith
davidsmith's picture

Nominally, we are all dead.

Wed, 02/13/2013 - 15:04 | Link to Comment Jack Sheet
Jack Sheet's picture

Just a glitch in the Matrix.

Wed, 02/13/2013 - 15:07 | Link to Comment VonManstein
VonManstein's picture

Personaly think its more of a big deal than being made out. Bond market is turning look at UK Gilts.. nasty.

Bonds are finnished.. stocks also.. just not yet.

The selling in the metals is just relentless so that should offer clues to what is likely round the corner..

Wed, 02/13/2013 - 15:22 | Link to Comment maskone909
maskone909's picture

where are you guys at zh getting a 2.05 print on the 10y? 2.033 hod

Wed, 02/13/2013 - 15:26 | Link to Comment SheepDog-One
SheepDog-One's picture

The occasional spasms and twitching of the world economic corpse.

Wed, 02/13/2013 - 15:28 | Link to Comment firstdivision
firstdivision's picture

Following the same pattern since 2010, so in otherwords, buy it now sell it in August, then short them til next Feb.  Rinse, wash, repeat then buy physical with profits.

Wed, 02/13/2013 - 15:50 | Link to Comment helping_friendl...
helping_friendly_book's picture

Yawn.

Wed, 02/13/2013 - 16:03 | Link to Comment Sach Mahoney
Sach Mahoney's picture

Must print more.  Must keep yields low or bond bubble blows up.  PRINT DAMN IT, KEEP THOSE PRINTING MACHINES ON!  - BEN

Wed, 02/13/2013 - 17:24 | Link to Comment SeattleBruce
SeattleBruce's picture

There's a LOT of holes to plug around the world.  What happens when BENCO has a brain fart and misses a key plugging effort, or overdoes it somewhere, and then can't regain control?  Even BENCO can't account for every contingency, and in fact I think most of us lack any certainty that he really knows what he's doing beyond the CTL + P command (his studies of the Great Depression notwithstanding); for instance how much to put in the quantity field to print, and how to abort the print command.  What we do know, and what he is finding out, is that number CANNOT go lower.  The FED cannot unwind this.  It's gunna be a crazy ride.  Prepare.

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