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Bid To Cover Plunges To 6 Year Low, Indirects Slide In Weak 3-Year Auction

Tyler Durden's picture




 

On the surface, the just concluded auction of $24 billion in 3 Year paper was solid: printing at a high yield of 1.271% (22.93% allotted) while highest since April 2011, this priced 0.4 bps though the When Issued of 1.275%.

The good news ended there, because while the Direct Bidders took down 15.1% of the auction, or the highest since last November, it was the big drop in Indirects to 40.8% (down from 47.7%) and the lowest since November 2014, offset by a jump in Primary Dealers, that signalled not all is well. 

But the worst was the plunge in the Bid to Cover, which after printing at a reasonable 3.14 a month ago, dropped to a paltry 2.82 in November, not only far below the TTM average of 3.27, but the lowest since October of 2009 when it hit 2.76 however in a rising trend.

In short: end demand far weaker, saved by Primary Dealers, as suddenly foreign central banks are far less interested in US paper just at a time when yields are rising and purchases of said paper that much more attractive.

 

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Mon, 11/09/2015 - 14:28 | 6768522 UndergroundPost
UndergroundPost's picture

In other news...Krugman is a piece of shit

Mon, 11/09/2015 - 14:40 | 6768598 Dazman
Dazman's picture

Any not just any piece of shit. He's one of those foul, dark, dry, smelly, hard-to-pass pieces of shit.

Mon, 11/09/2015 - 15:32 | 6768854 KnuckleDragger-X
KnuckleDragger-X's picture

Just call him Captain Constipation, hero to the brain damaged everywhere.......

Mon, 11/09/2015 - 14:29 | 6768529 Tjeff1
Tjeff1's picture

"...as suddenly foreign central banks are far less interested in US paper..."

 

This will become a very common statement in the future.

Mon, 11/09/2015 - 14:41 | 6768604 Soul Glow
Soul Glow's picture

Moar QE or else JPM will have to spend all their money keeping the ponzi alive.

Mon, 11/09/2015 - 14:39 | 6768593 Soul Glow
Soul Glow's picture

The stock bubble is nothing next to the bond bubble.

Mon, 11/09/2015 - 14:59 | 6768704 29.5 hours
29.5 hours's picture

 

 

"In short: end demand far weaker, saved by Primary Dealers"

Time for the government to initiate their plans to sell Treasurys directly to the unsuspecting citizens...

 

 

Mon, 11/09/2015 - 15:13 | 6768766 illmatic
illmatic's picture

https://roguelibrary.com/

Hope you guys enjoy. Took a lot of inspiration from ZH for this novel, which deals with the current financial crisis, cryptocurrencies, anarchy, Austrian economics, central banking, etc.

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