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10 Year Auction Prices Over 3.00% For First Time Since May 2011
With the 10 Year When Issued trading comfortably above 3% around the time of today's auction conclusion, it was expected that today we would see the first 10 Year auction, in the face of the WE6 9 Year 10 month reopening, pricing north of 3% for the first time since May 2011. Sure enough, moments ago the Treasury announced that it had sold $21 billion in benchmark paper at 3.009% tailing just slightly to the 3.007% When Issued. But while the yield was notable, the Bid To Cover actually picked up from last month's 2.61 rising to 2.68, almost exactly in line with the TTM average of 2.69, and showing a modestly increase in recent BTCs. The internals were a snoozers, with Dealers getting 39.8%, one percent above the 12 month average, Indirects were allotted 46.6% - below last month's 48.9% but above the 41.8% TTM average, and Directs got the balance, or 13.6% of the final allottment. Largely, a vanilla auction.
Perhaps the only notable item is to keep track of whether dealers sell it back to the Fed: during yesterday's POMO, even though the OTR WE6 CUSIP was not part of the exclusions, dealers sold precisely $0 back to the Fed. Now that they have another $8 billion of the issue, expect this to change at the first possible POMO opportunity.
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C'mon 5%!!!
Get to work Mr. Yellen.
He's gonna have to Un-Taper.
expect this to change at the first possible POMO opportunity.
Tomorrow's POMO looks relatively light for some reason. So, maybe another day.
POMO just got a little more expensive, didn't it Barry - you fucking asshole.
Not when their cost basis for currency is zero.
Everyone is getting a better deal on bonds at these prices. I won't be surprised if they Un-Taper eventually but it might be creating a good buying oppurtunity for the Fed.
That or they are fucked and can't hold their bond buying program together.
The supply of bonds and existing duration of outstanding debt might be important too.
They are fucked.... NEXT!!!!
"Do whatever it takes" Mr. Yellen.
Why wouldn't the primaries sell previous issue now discounted 10 year notes to the fed at par?
I really think this is the year that all Hell breaks loose.
Been saying that since 1999 (when gold was under $300 an ounce).
Primary dealers got a better deal? < shocker >
that guy from shadow-stats thinks we blow up the currency first half of this year.
John Williams, not to be mixed up with the duchebag John Williams from the San Fransisco Fed who said yesterday, "stocks are not overvalued".
He's been saying that for a while though.
The Federal Reserve is being forced to buy ever-increasing amounts of treasuries.
Rates should look pretty steep by that time. Who cares, junk paper is junk paper, no matter what the rate is.
Maybe the Fed has decided to let rates rise.
Alasdair Macleod: Currency Crisis And Gold
Alasdair Macleod has come out with interesting new way to measure the potential value of Gold. Nobody is interested in Gold now ... apart from China which was buying the record amount of Gold last year. Bitcoin crowd are still happy chasing the Bubbles and 10Y Yield are above 3.0% today again.http://sufiy.blogspot.co.uk/2014/01/alasdair-macleod-currency-crisis-and...
4% by March.
If so - then inflation will likely surpass 20% as they try to print the problem away.
The funds raised from selling bonds buy stocks. Selling bonds increases costs on overleveraged world. STALEMATE!
(Sharks die if they do not keep moving)
Raise interest rates to 5%, the tighter budget eliminates social security and EBT cards, people riot, DHS gets to use humans for target practice with those billions of bullets they purchased.
Now serious talk amoungst banksters of a bail in to cover the added cost of going over 3%.
tick tick tick........