This page has been archived and commenting is disabled.
Treasury Yields Rise Most In 9 Months, Weak 7 Year Auction Does Not Help
Treasury yields are surging across the complex with the long-end steepening notably. Today's 10.5bps jump in 10Y yields is the biggest percentage shift since early November 2013... and a significant tail in the 7Y auction just made things worse.
The long-end is suffering most...
But the selling is across the complex...
It is unclear how much of today's bond sell-off was a factor in the just concluded 7 Year Treasury offering, but what is clear is that unlike yesterday's strong 5 Year issuance, today's auction was disappointing, starting with the High Yield of 2.25%, the highest since April's 2.32% and tailing the 2.24% When Issued by 1 bp. And while the Bid to Cover was a slight improvement from last month's 2.435 rising to 2.581, it was the internals where we saw a flight of Direct bidders, who only took down 15.2% of the auction. This was the lowest allotment since July 2012. The offset: a pick up by Indirects from 40.6% to 47.4% while Dealers ended up with 37.4% of the auction.
Regardless of the auction one thing is clear, the shorting of bonds today will continue until the squeeze, as has been the case for all of 2014, returns.
- 3946 reads
- Printer-friendly version
- Send to friend
- advertisements -





Trade ya a tranny for 2 big tails.
Russia is liquidating.
"Bond Vigilantes"...
LMFAO!!
look at U.S Steel today. Ho Lee Fuk
Do they have a pipeline contract or are they benefiting from sanctions on Russian imports? Could be they're retooling for a massive war effort?
They are a heavily shorted piece of shit. all they needed to do was barely fart out something positive to set off a massive squeeze.
Fantastic. Just another day in the zoo.
hook 'em with an 18mo 0% interest card and then WHAM!
full faith and credit...
Raise rates in 3....2....1....right?
I'm just looking forward to the Market Update and Hot Money Stock Tips report from Yellen Capital LLC. I know this is off-topic, but it would be great if they could extend their coverage to include some kind of 'Lottery Ticket' pix - high risk, big payoff type items - you know, like if they could have tipped CYNK before it took off there, that would have been pretty awesome. I just hope their CEO and head trader Janet is reading this and takes the suggestion into consideration.
flat and getting flatter.
10 Bps rip in yields on a fake number while the country is in a disguised depression...something is seriously wrong with this picture
It is becoming clear that the present methodology for calculating GDP is becoming increasingly less relevant as a measure of the economy. M3 was dropped for less.
M3 therefore was dropped for a reason.....They knew what was coming, Massive amounts of money printing. The Conspiracy theories are all coming to the surface now.
^^ This...... You're exactly right. When they decided to drop M3, you knew something was up.
BTFTD...... by the fucking treasury dip.