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10 Year Auction Prices At Second Lowest Yield Of 2014; Highest Indirects Since Dcember 2011
While the just concluded 10 Year auction was hardly exciting, pricing at 2.535%, which was slighly higher than last month's 2.44% if still the second lowest yield for a 10Year auction in 2014, and a 0.2 bps tail to the When Issued of 2.533%. The Bid to Cover of 2.71 was slightly below last month's 2.83, and right on top of the TMM average. But it was the internals where there was some fireworks, with the Indirects taking down well over half of the auction, or 53%, the first time that Indirects have received a majority of the auction since June 2013 and the highest Indirect bid since December 2011. The flipside was that Dealers were left with just 33.6% of the auction, the lowest since May, and Directs left holding 13.5% of the final allotment, below the 18.5% TTM average. All in all, a snoozer of an auction.
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Shaking out the weak hands that remain. Same as it ever was. We all know the short term interest rates really matter, now about those liabilities...
Liabilities? What liabilities?
*Sticks Head Back Into Sand*
Obama has a very high lie ability.
Bonds are boring! There is more excitement in cfd trading.
Bonds are boring until they blow up. When things get stressed to the point that we can no longer service our debt, it will be interesting times indeed.
but... but.. but... "debt does not matter"
/s
FYI
An "Indirect Bidder" is referred to on the auction results press release as customers placing competitive bids through a direct submitter, including Foreign and International Monetary Authorities placing bids through the Federal Reserve Bank of New York.
So it could be almost anyone/entity.
My bet is that a lot is either POMO but not going through primary dealers, somebody who has a lot to lose if we crash, or somebody who wants a lot of leverage over us. How much in USTs did "Belgum" purchase in recent history? Something fucking stinks here.