Yuuge 10Y Auction: Stops Through By 1.8bps; Foreign Buyers Surge To 71%

Tyler Durden's picture

There is only one word to describe today's 10Y auction, which took place just as the dollar was tumbling after the Trump press conference provided virtually no detail on his fiscal stimulus plans, sending all risk assets lower: "Yuuge."

Pricing at 2.342%, today's 10Y reopening of Cusip U24 stopped 1.8bps through the "When Issued" of 2.36%, the biggest gap since May 2016, and below last month's yield of 2.479%m with internals that were likewise scorching: the bid to cover jumped from 2.39 in December to 2.58, while Indirect Bidders, aka central banks, took down a whopping 70.5%, a spike from 57.5% last month and one of the highest on record, while Directs took down 8.7%, leaving a paltry 20.7% to Dealers, also one of the lowest in 10Y series history.

Overall, blistering demand for 10Y paper and the first time since August that the yield has posted a monthly decline.

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LawsofPhysics's picture

...running for "safety".


The Federal Reserve is saved for another day...

NoVa's picture

if the close can hold at 2.34 or lower, then next stop is a test of 2.19. 

Bay of Pigs's picture

Foreign buyers? Let me guess Belgium or the Caribbean banks?

Face it, it's the Fed itself that's buying it all.

wisehiney's picture

Sit tight and be right.

Get paid to wait.

NugginFuts's picture

is that your way of saying you're losing money shorting treasuries?

svs9000's picture

Just checked my safe...the gold is still there...

not sure if the same can be said for the federal reserve...

SomethingSomethingDarkSide's picture


buzzsaw99's picture

bill gross is getting old.

Bam_Man's picture

Getting close to filling the first YUUUGE gap on the $TNX chart (2.117-2.189).


scoutshonor's picture

Yellen is sitting there with her finger on the rate hike button with rates...going down!  

It would be funny if it didn't mean we may be in for a lost decade--or two.

muppeteer's picture

soooo we're just going to ignore the 104 basis point run since July???

jplbrmo's picture

Could someone here tell me how i can educate myself as to what the fuck you are talking about?. I mean the relationship between the rise and fall of the dollar,and how that effects treasury rates.

1777's picture

The ECB must be buying US bonds with both hands now...