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10 Year Re-Re-Opening Auction Just Good Enough

Tyler Durden's picture




 

Just like yesterday's 3 Year $32 billion bond auction, so today's 9-year 10-month $21 billion re-reopening of Cusip VB3 was largely much better than last month's auction, if not quite stellar, driven likely by the jump in rates, which rose from 1.81% in May, to 2.21% in June to 2.67% today, which was on top of the 2.669% When Issued, and the highest auction yield since July 2011 or right before the first debt ceiling crisis. Today's Bid To Cover, while better than last month's ugly 2.53, was still the second worst since August's 2.49. Finally, the internals were uninspiring, with Dealers taking down $9.5 billion of the precious collateral (10 Year was once again special today at -0.30%) or 45.2% of the total meaning Bernanke can proceed to monetize another $10 or so billion in the 15 Year range for one more month, slightly higher than the LTM average, while Indirects left with 38.6% (in light with the average), and Directs got 16.3% of the auction. Altogether a forgettable auction that was just good enough to relieve the now monthly collateral shortage that gets worst just before auctions.

 

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Wed, 07/10/2013 - 13:17 | 3738048 slaughterer
slaughterer's picture

The buyers of this 10-year debt will be sufficiently fucked in AH when the human clam opens his mouth in Q&A.

Wed, 07/10/2013 - 13:49 | 3738199 fonestar
fonestar's picture

Who buys debt period?  Pawnbrokers?  What happens when all the stupid people realize nobody is getting paid back.... ever?

Wed, 07/10/2013 - 13:18 | 3738054 ThunderingTurd
ThunderingTurd's picture

Just wait till the minutes.  Yields to 2.70%...they have to talk a tough game...as they know it must end sometime.  Rock meet hard place.

Wed, 07/10/2013 - 13:20 | 3738059 slaughterer
slaughterer's picture

<< hate La Vorgna more than Liesman

<< hate Liesman more than La Vorgna

Wed, 07/10/2013 - 13:24 | 3738089 sgorem
sgorem's picture

shit, just hate 'em ALL! that way no one can call you a bigot.

Wed, 07/10/2013 - 13:20 | 3738065 fonzannoon
fonzannoon's picture

I hope so slaughterer. 3%. Bring it.

Wed, 07/10/2013 - 13:22 | 3738077 sgorem
sgorem's picture

Dr. Bernastee is sweatin like a whore in church today.

Wed, 07/10/2013 - 13:24 | 3738086 buzzsaw99
buzzsaw99's picture

the fazmobile is revved up today

Wed, 07/10/2013 - 13:24 | 3738088 ThunderingTurd
ThunderingTurd's picture

Look at the market just chillin' at 1650!  Seriously, this volume is laughable.  Its like everyone is tip-toeing through the cave of the grumpy sleeping bear just hoping to make it out alive.  If he awakens at 2:00pm CST...watch out!

Wed, 07/10/2013 - 13:25 | 3738095 ekm
ekm's picture

A security becomes a collateral only when it is pledged as such.

 

If purchased and stored, it is not a collateral.

Buying USTs does not make them collateral.

Making them available in the repo market, makes them collateral.

Wed, 07/10/2013 - 13:26 | 3738097 slaughterer
slaughterer's picture

1650: can't go no higher with the long yields so high and the TBTF losing so much $$$ in their T holdings.  

Wed, 07/10/2013 - 13:29 | 3738112 Divided States ...
Divided States of America's picture

but somehow they are pinning it here for much of todays trading...I do hope the old bearded one chokes on some Q & A but I am thinking its just going to end up with a lot of nonsensical gibberish followed by a round of aplause from the circle of yard apes AKA non event and lets ramp up the markets even more.

Wed, 07/10/2013 - 13:28 | 3738107 ebworthen
ebworthen's picture

There goes the "housing recovery".

If you haven't sold yet and want to you'd better do it now.

Wed, 07/10/2013 - 13:28 | 3738108 Tsar Pointless
Tsar Pointless's picture

Funny. Since May 2, TNX is up over 60% in yield, and the S&P is up about three percent in price.

Either stocks are correct, or something is wrong in Bernankeland.

Wed, 07/10/2013 - 13:33 | 3738126 wisehiney
wisehiney's picture

Clear the docks, backing up silver truck dock 1, long tbond dock two!

Wed, 07/10/2013 - 13:33 | 3738128 Dr. Engali
Dr. Engali's picture

Nothing like living pay check to pay check. It seems to be the American way.

Wed, 07/10/2013 - 13:40 | 3738156 Joe Davola
Joe Davola's picture

Shouldn't that be living EBT refill to EBT refill ?

Wed, 07/10/2013 - 13:38 | 3738144 Dubaibanker
Dubaibanker's picture

Anybody who bought any UST bonds in the last 1 year, is suffering a great loss. Last 2 months have been a disaster in particular for even mega stars like Gross and Gundlach, not to mention every single bond fund with every single top bank, peaking about 12 months back and never looking back. Some funds peaked about 2 months ago due to varying duration. When the yields touch 3% and then 4% is a matter of debate, not if.

Let the tsunami of interest rate rises begin....

At what point does Leonardo scream, 'I am the king of the world'.....before the Titanic sinks, right? :) Am sure Bernanke is thinking the same! 'Kate' went missing while he was busy thumping his chest! Wonder where she must be? Hmmmmmm.....

Watch this video to see how the market will react shortly...maybe in the next few minutes....or when Bernanke speaks in Boston?

http://www.youtube.com/watch?v=8aqDoPDgjco

 

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