Strong 3 Year Auction Despite Lowest Bid To Cover Since August

With all the equity excitement from China to Europe to the US, it was easy to forget that the US has some $24 billion in budget deficit and debt rollovers to find in the form of 3 Year paper. And moments ago the US Treasury priced the first of the week bond issue when it sold 3 Year notes at a 0.932% yield, the lowest since April, and stopping through the When Issued 0.936%. While the Bid to Cover came in at a lowish 3.156, the weakest since last August, the internals made up for it, as the Direct take down jumped from 9.7% to 13.9%, and Indirects ended up with 47.7% of the issue leaving 38.4%, or 3% below the TTM average of 41.3%.

Perhaps not surprisingly, the 3Y OTR was, alongside the 10Y, the only maturity that was trading negative in repo, thereby once again hinting that today's auction would come in stronger than some had expected, as it just did.

Comments

[KnuckleDragger-X]

Buy our bonds because we aren't fucked up like all those OTHER countries......

[SethDealer]

anybody buying treasuries is a dumbass

[disabledvet]

The Federal Reserve itself could step in here again...

[youngman]

After watching this Greek Fiasco..you would think someone might get the idea that debt is not such a good thing to own....Guess not..

[Consuelo]

Lordy what an unmitigated Catastrophe it's going to be, when confidence in the American Ponzi finally cracks.   And when it does, there ain't no goin' back.    Speaking of that, isn't there word that we're about to slap China with some 'sanctions' for the hack-ey sack they've supposedly been up to...?

[disabledvet]

Twelve percent yielder on a North Dakota oil play...produces oil, pays in dollars.

[Ajax_USB_Port_R...]

Greece was borrowing at 5% when the 'true rate' should have been north of 25%. US is borrowing at a 0.932% yield when the 'true rate' should be at least 15%. At 0.932% the implied risk is zero! Hah!