Treasury Sells $35 Billion In 5 Year Paper In Boring Auction As Yield Drops

Tyler Durden's picture

There was nothing notable about today's just concluded $35 billion 5 year auction, with the possible exception of the fact that at a high yield of 0.777% (of which just 12.5% was allotted at the high), just inside the When Issued 0.778% at 1 pm, this was the first yield drop in three months, breaking the sequence of rising yields since December 2012 when Bernanke announced his $1 trillion balance sheet expansion program for 2013. Aside from that, the Bid to Cover of 2.85 was just shy of January's 2.88, and on top of the TTM average of 2.86. The Direct takedown was a weakish 14.3%, the lowest since September 2012, Indirects saw a 41.7% allocation, the highest since November, and the remainder was given to the Dealers, who will as usual promptly flip their quota back to the Fed while picking up several point in margin spread at the upcoming POMOs. Overall a snoozer, which however with tomorrow's last auction for this week, will take total record US debt which was $16.61 trillion higher by $53 billion to $16.7 trillion, or a 105% debt/GDP rounded up.

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fonzannoon's picture

bernie madoff must be so pissed watching his blue print worked to perfection and he is in jail because he could not print. having constraints really sucks.

Careless Whisper's picture

The Careless Whisper QUOTE OF THE DAY and Threadjacking


"We actually benefit from downturns."   Jamie Dimon, CEO, JPMorgan Chase; (explaining the Bank's business model to buy assets for pennies on the dollar)



walküre's picture

Several people I know feel this way about Madoff (incl. myself). Bernie screwed too many jews. Bennie? Not so much. He makes them money.

McMolotov's picture

In a sea of big fish con artists, Bernie is but a guppy.

Stock Tips Investment's picture

These operations have as much or more impact that TV appearances from BB.

DoChenRollingBearing's picture

Energy MLPs offer yield...  But, some new ones differ a lot from most of the older ones.  Some offer stable yields of up to, say, 5.5%, although this is getting to be a crowded trade.  Some newer ones offer "variable yields", no promises...  But, these MLPs may offer income for people who need it, like me.  Large investments are needed in the Anerican energy infrastructure over the next several years, energy MLPs are one path.

"Barron's Article on MLPs -- 25 Feb 2013"

Nothing To See Here's picture

Incoming in 3, 2, 1...:

Fed buys 35B of treasury paper issued last year from primary dealers.

CheapBastard's picture

Can't you just imagine the misery of all those retirees trying to live on 0.777% interest on their savings and retirement funds.

hedgeless_horseman's picture



Can't you just imagine the misery of all those retirees trying to live on 0.777% interest on their savings and retirement funds.

You obviously are not aware of FINRA's new suitability rule. 

2111.05 (d) Quantitative easing requires that a member or associated person who has actual or de facto control over a customer account no longer have any reasonable basis for believing that a series of recommended transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together in light of the customer's investment profile, as delineated in Rule 2111(a).

Stuff Granny into some post-modern blue chips like GM, AIG, and FB.

fonzannoon's picture

bob pisani is such a cockface.

yogibear's picture

Bernake and the Fed banksers buying the debt with imaginary money making imaginary promises.

Bernanke and the Fed is telling everyone, "See there are really skittle pooping unicorns"


lolmao500's picture

Obamabots think the US ain't spending enough... gotta use those record low yield to spend like there's no tomorrow... you know, to create a recovery! Then when there's a recovery, it'll be easy to pay for all that debt!

They would vote for a $2 trillion + deficit in a heartbeat if they could.