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Bond Market Not Seeing Any Upcoming Rate Hikes After A Blistering 2 Year Auction
Last month, with the entire world absolutely certain that the Fed would hike rates, it seemed it was easier to pull teeth than to find buyers for the December 2 Year acution. Not so much this time: moments ago the US Treasury sold $26 billion in 2 Year paper in an auction delayed from yesterday's snow day, in a whopper of an auction which saw 3.739 dollars in demand for every dollar, a Bid to Cover that was the highest since December 2013 and far above the 3.38x TTM average.
And it wasn't the rising yield that drove interest: quite the contrary - the High Yield of 0.54% not only plunged from last month's 0.703%, but also priced through the 0.544% When Issued.
Finally, while Directs took down only 8.75% as a result most likely of Pimco moving away from the short-end, and the lowest since June 2013, it was the Indirects that soared to 48.7%, the highest since February of 2010 when it was 54%.
Overall, if anyone is seeing a rate hike announcement on the imminent horizon, it sure isn't the exuberant buyers of today's 2 Year auction.
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looks like were headed to double-digit - if not triple-digit negative rates - sounds exciting !!
A greek default will do that.
the greek default is already priced in (look at the article earlier this morning) ... time to move on to spanish, italian defaults....
Hey Mickey Brussels will buy anything
a greek bail out is priced in. a greek default is not even remotely considered.
rotation from one ponzi to another.
stawks to treas.
fry pan to black ass kettle
ooohhhh dose rates loooook awefull atractive
But, Hilsenrath promised us a rate hike!
I WANT MY RATE HIKE!!!!
[Oh,... and my MTV, too...]
Rut Ruh Raggy - - - Currency Monsters - - - Yikes
Ah Scoob - that's nothing to worry about. Let's go find some Scooby Snacks, ok buddy?
yea - I watched too much TV as a kid.
NoVa
Zoinks!
Treasury yields are heading lower not higher
duh
just look to other Western nations
just look to other Eastern nations:
http://static.seekingalpha.com/uploads/2011/8/29/472182-131461048973351-James-A--Kostohryz_origin.png
Russian spies buying it all up.
We auctioned off some folks.
I just shake my head when I see these Marketcowmilkers trying to squeeze the last drop, out of the last teet of Fed. speak.
Look at what 10's are pricing. US 10Y Yield 1.779 -0.047 -2.55%
1) The U.S. is decoupling from planet Earth.
2) The bond market has it all wrong.
3) Everyone has a good paying job.
4) Everyone is buying a new house.
JFC, I could go on and on, but I'd probably blow out Tylers servers.
Go back to 2004-2005, the same decoupling is being repeated.
Interest rates will not be "normalized" until a new US dollar is issued.
Don't fool yourself
The higher bond prices go up the moar room stocks can go up when bonds reverse
It's all in the plan
Apparently Apple's earnings weren't good enough.
How's that war with Russia going?
Gonna need another 250 billion in issuance? No problem..
There is NO RATE CUT coming. Period. I dont care what Yellen says. OR Goldman. No chance this year at all. Maybe by 2020/21.
US T Bond curve is telling you all you need to know about the ongoing recession. Buy the long end while you are still in positive rate zipcodes. it wont last.
swiss with a yen twist is the model to model. eeeeeks, what a fucked up mess.
soooooooo contorted even hodini would ask howd ya do that?