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Two-Year Auction Prices At Highest Bid To Cover In 6 Months, Lowest Dealer Allottment In One Year
While on the surface today's bond auction of "only" $32 billion in 2 Year paper (last month and previously it was $33 billion or more, which is now declining alongside the dropping US deficit and net funding needs, if not the absolutely flat amount of debt monetized by the Fed), was uninspiring, there was some stirring beneath the surface. Specifically, the high yield of 0.323% was through the When Issued of 0.328%, while the Bid To Cover of 3.32 was above last month's 3.09, and was the highest since the 3.63 in April. Has the trend of declining Bids to Cover finally ended? Looking at the internals shows a return to some recent normalcy, namely that the Directs took down a substantial 30.97%, the highest since February, Indirects had a modest 29.02% allocation leaving just 40% to the Dealers, which was also the lowest Primary Dealer take down since October of last year. Perhaps most importantly, the flatline in the yield which has been in the 0.3% range since August 2011 indicates that absolutely nobody belives the Fed will hike rates any time before 2016.
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Do you mean to say that there was a time when the banks had to PAY to borrow money from the Fed? Really? Stop it -- you're killing me.
Anybody looking for a not-so-private-sector job? Grocery Stocker @ $18.57/hr.
http://baltimore.craigslist.org/lab/4156782387.html
Hurray Gub'Mint.
I'm applying. How can I not? I make $14.25 now and work insanely irregular hours and the jobs beats the hell out of my car because of distance traveling and innadequate reimbursement on mileage.
It's either that or I go back to Uncle Sam's goon squad.
Poof...aaannnnnd it's gone. Time for a new funding.
But somehow it's positive for stocks.
Who needs dealers? We don't need no stinking dealers, we got the FED
"Return to normalcy" -Bullshit, still buying 45 billion per month motherfucker.
"won't raise rates until 2016" - will it matter if no one is using the dollar?
I'm close to ignoring these bond threads altogether these days. It doesn't appear to mean a thing.
I sure hope this system can hold itself together for another few years.
Well of course the FED can't raise rates, they've built a castle out of paper mache totaly dependant on 0% interest paper.
Who cares anyway? Bankers suckin it up like manna from Dog....go away....'batin....