Indirect Bidders Tumble, Bid To Cover Lowest Since 2009 In Poor 3 Year Auction

Tyler Durden's picture

With the election front and center on everyone's attention, today's sale of $24 billion in 3 Year paper was expected to slide under the radar as an afterthought, and perhaps that's a good thing because it was quite ugly. While the high yield of 1.034% stopped through the When Issued of 1.036%, the result of the notable selloff today across the curve as a result of early polling "data" which shows Hillary in the lead across battleground states, the internals were atrocious.

The Bid to Cover of 2.69 matched that of July 2016, and was also tied for the lowest since July 2009. As a result of the lack of bidding interest, Dealers had to step in in size, taking down a whopping 49.7%, which was the highest since June of 2014, when Dealer soaked up more than half the amount on offer. Obviously, Indirects pulled away, taking down only 42.6%, the lowest since February 2016, and leaving just 7.6% to Direct bidders.

Overall, a poor auction, which should probably not come as a surprise now that the Fed is expected to hike rates in just over one month time.

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Takeaction2's picture
Takeaction2 (not verified) Nov 8, 2016 2:14 PM

Get out and VOTE.  And be careful tonight in the inner cities....  Watch your surroundings.  Could get real interesting.

Hohum's picture

Maybe if Clinton loses. Otherwise, be aware of flying pitchforks.

Seasmoke's picture

Everything is green today EXCEPT Gold. That's a new manipulation I believe.

LawsofPhysics's picture

LOL!!  Your move Janet...

Kagemusho's picture

So, the Big Boys are getting antsy, are hedging their best that Trump might win,  and want to dump their paper? All those bonds? They'll have to eventually regardless who sits in the Oval Office.

The shit approaches the fan in slow motion...until it's about an inch in front of the fan blades. Then, when the sell orders become an avalanche, you'll see it move at lightspeed, as fast as those electrons travel the IT backbones.

May the Algos die of electronic apoplexy...