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10 Year Auction Reopens At Highest Yield Since October 2011, Lowest Bid To Cover Since August
Following yesterday's ugly 3 Year auction, some were worried the bond market weakness could spill over to today's benchmark 10 Year reopening of $21 billion in paper. It prices just through the When Issued of 2.210%, or at 2.209%, a little better than expected, although the highest yield since October of 2011. So while the demand on the surface was sufficient, the Bid to Cover, which dropped to only 2.53, below last month's 2.70, well below the TTM average of 2.92, and the lowest since August of 2012 when the BTC came at 2.49. Nonetheless, the downward slope in the BTC curve in both the 3 and 10 Year auctions is quite visible. In terms of takedown, there was a surprise as the Indirects took down a whopping 51.7%, the highest since December of 2011 when they were left with 61.9%. And while Dealers ended up with just 36.6% it was the Directs that had the smallest allocation, or 11.7%, since September of last year. Perhaps Dealers are now masking as Indirect. Either way, the good news is that with the reopening, dealers should have some additional collateral for a while, or at least until the Fed monetizes it. Look for this CUSIP - VB3 (On The Run) to remain on the POMO exclusion lists for white a while.
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Zulauf: Bubble Will Burst In Two Years
Felix Zulauf:
Full Text:
http://homment.com/Zulauf-bubble
inflation is visible in cost of most of the things, wages being one of the few exceptions. surely this is excelent news for any central banker.
nice inverse H&S there
"Apparently, it was good enough"
BlowHorn (on the auction)
Housing market is going to get real Ugly as mortgage rates rise and house sales (and prices) plunge.
aaaand Treasuries get bid up a little on the weak-ish auction....huh???
Fascist Bank (Fed) prints USSA paper money to buy USSA paper debt and keeps the fascist state alive including all the state oppression instruments it created.
What's not to love.
is the Government/can the Government be compelled to pay interest...on anything financial asset in their possession? hmmmm. http://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_eisukesa... hmmm. "former managing director of the IMF" as well. any American's qualified for that job? (i can only think of one actually...and needless to say he's not in Government nor interested in a Government job.) "just print MOAR does not qualify you for that position." these folks have to make hard choices about Large Numbers of People. He's one of the more interesting ones actually...and he did appear "from out of nowhere" just the other night. and we do have the FOMC meeting...is it tomorrow? http://www.federalreserve.gov/whatsnext.htm nope, next week.