Tailing 3Y Auction Prices At Highest Yield Since April 2010

Tyler Durden's picture

In the first of this week's three auctions, the Treasury sold $24 billion in 3 Year paper in a medicore, tailing auction, which stopped at 1.75%, a 0.2bps tail to the 1.748% when issued, and the highest yield since 1.776% in April 2010.

In addition to the tail, the internals were also mediocre, with the Bid to Cover of 2.76 below last month's 2.83, and also below the 2.88 6 month average as well as under the slightly smaller 2.84 for the four prior Refunding auctions. Total bids amounted to $69.1bn for $26.9bn in notes for sale vs the 6 previous auction average of $71.8b in bids for average of $26.6b in notes sold.

Indirects were awarded 53.5%, below October's 54.3%, and also below the 55.6% 6MMA, while Dealers got 37.5%, below the 41.3% 6 month average, leaving Directs with 9% of the final allottment, modestly above both the 7.1% in October and the 8.8% average.

Altogether, a good, if unremerkable auction to start off the week's bond sales.

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Five Star's picture

All budeget dificts since WWII combined are less than the interest expense on the national debt since then


LawsofPhysics's picture

In other words; the direct monetization of debt...

Remember this; "we would never directly monetize the debt, that would be bad" - Ben Bernanke

How is this fucker still alive?

LawsofPhysics's picture

Churn baby churn.  The primary dealer bankers and financiers charge a lot of fees pushing that free money around.

If you get your money for anything less than the yield, you are in the money even before you charge those fees!!!

Better Raise those rates Janet!!!!!!!!

Late onset ADHD's picture

quantifying the yields, basis points, auction historicity?...

please monetize my ass now...

Ben A Drill's picture

PPT doing what they do best today.

Bernie Madolf's picture

Holy curve flattening Batman!