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Foreign Central Bank Buying Jumps In Blistering 5 Year Auction
After yesterday's unexpectedly strong 2 Year auction, and coupled with the latest market selloff, there were few dark skies ahead of today's auction of $35 billion in 5 Year paper. Furthermore, suggesting today's auction would be very strong was today's repo market which saw the 5Y trading special at -0.15% on the curve, just begging for a short squeeze into the auction.
That is precisely what happened: pricing at 1.467% moments ago, essentially unchanged from last month and 0.9 bps through the When Issued, with a Bid to Cover jumping from 2.34 to 2.57 (and above the LTM average), today's 5Y issue was a very strong auction with few concerns that foreign investors and/or central banks may be stepping away.
The internals were also impressive: while Directs took down just 5%, Indirects aka foreign bidders were left with 63.5% of the issue, well above the 57.9% TTM average, and the second highest Indirect bid of 2015 lower only than July's 67.5%. Dealers were left with 31.5% of the paper.
Finally, assuming no material changes in the demeanor of the market over the next 24 hours, expect tomorrow's 7Y auction to also proceed without a hitch. In fact, the more the general sense of risk-off, the strong tomorrow's auction will likely be.
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Buy that paper, it's safe as the Titanic.......
i have blisters from scrolling through ZH for 4 yrs waiting for this shit show to end
I have carpo-tunnel arthritis starting in my finger!
Auction Summary > Collateral, Bitchez
The road goes on forever and orange traffic cones and detours abound......
They use those cones as speed traps now; they double the fines in the "non-working work-zone"; the ones with warning signs, lower speed limit, orange cones and never any work being done except the Police.
Enjoy: https://www.youtube.com/watch?v=Q0iqg2UanEc
Not in Texas, the law states workmen have to be present......
We all agree, but as much as we want it to end; we also know that life as we know it will be different this time around. My perspective on all this is seen through the lens of Scripture and the prophecies in Revelation, Daniel and Ezekiel were generalities 10 years ago and now they are becoming very detailed. For most that will be much worse than anything man does concerning this reset, for man's biggest problem is that the Lord is good, which means He is also just.
Move along: It's simply Why US Cities Fell & New York Thrives http://wp.me/p2kmGE-jm
1oz Silver American Eagle €12 @ EurGold
https://www.eurgold.eu/silver/silver-coins/american-eagle-1oz-silver-coi...
http://www.gold-eagle.com/article/hidden-trillion-qe-monthly-volume