This page has been archived and commenting is disabled.

Indirect Interest Surges In $32 Billion 3 Year Auction Which Prices At Record Low 0.50% Yield

Tyler Durden's picture




 

Any concerns that the first bond auction following the US downgrade may not price well can be put to rest. Not surprisingly, following the historic rout in the stock market over the past week which has seen nearly $8 trillion in global capital market losses recently, the Indirect take down in the just completed $32 billion 3 year auction surged from 34.5% in July to a whopping 47.9%, the highest since May 2010, when the market was imploding for the first time following the first Greek collapse and when it was unknown just what the response by the central planners would look like. The Indirect hit rate was a solid 75.8%, as virtually all submitted bids got allocated in the final take down. As expected the note was a smashing success, with the When Issued trading 0.515%, and the final price closing well inside, at 0.50%, a record low yield. The Bid To Cover was close to a record high coming at 3.289, up from 3.219 last month, and well above the 3.162 average over the past year. Completing the data set was the take down of Dealers which was 41% on 51.3 LTM average, and the Directs which came in line at 11.1% compared to 12.93% LTM. Overall a very strong auction driven primarily by equity capital market concerns.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/09/2011 - 13:17 | 1543023 Mercury
Mercury's picture

The Geithner good is the new Giffen good bitcheeez!

http://falkenblog.blogspot.com/2011/08/treasuries-new-kind-of-giffen-good.html

Tue, 08/09/2011 - 13:21 | 1543048 trav7777
trav7777's picture

with yields like this, we SHOULD be AAAA

Tue, 08/09/2011 - 13:15 | 1543025 barliman
barliman's picture

 

Mr. Miyagi says, "Risk Off!"

Tue, 08/09/2011 - 13:15 | 1543031 slaughterer
slaughterer's picture

Simple solution: Less money for NFLX, more money for Treasuries.  

Tue, 08/09/2011 - 13:19 | 1543040 Doyle Hargraves
Doyle Hargraves's picture

Like fucking sheep to the slaughter Bitchez!

Tue, 08/09/2011 - 13:20 | 1543045 WineSorbet
WineSorbet's picture

This seems to make ilene's article at the top of the page seem a bit wrong.

Tue, 08/09/2011 - 13:23 | 1543054 fuu
fuu's picture

Isn't that Jesse's article reposted by ilene?

Tue, 08/09/2011 - 13:22 | 1543053 kito
kito's picture

of course the auction went well, bubbles always do well until............

Tue, 08/09/2011 - 13:24 | 1543061 Johnny Lawrence
Johnny Lawrence's picture

Not sure there can be a bubble if the sentiment towards bonds is overwhelmingly negative.

Tue, 08/09/2011 - 13:32 | 1543088 kito
kito's picture

not the Underfunded States of America bonds

Tue, 08/09/2011 - 13:26 | 1543068 kevinearick
kevinearick's picture

"We have people buying Treasury securities because they're worried about the Treasury," he added. "We've got people selling banks stocks, taking the cash and putting into the banks for safety."

Tue, 08/09/2011 - 13:44 | 1543129 Raymond Reason
Raymond Reason's picture

Hahaha!  We truly live in Orwellian times. 

Tue, 08/09/2011 - 13:33 | 1543094 JPM Hater001
JPM Hater001's picture

When Bernanke gets to announcing the next step how can he honestly say we need more stimulus.

 

So what does everyone expect will happen?  Will it be bullish or bearish for the market?

Tue, 08/09/2011 - 13:37 | 1543101 slaughterer
slaughterer's picture

1;30pm   Somebody is entering the text of the announcement and somebody is calling somebody on Wall Street with the results of the meeting.  

S&P 500 is slowly descending to 1140.

What does that tell you?

 

Tue, 08/09/2011 - 13:38 | 1543108 JPM Hater001
JPM Hater001's picture

So, probably no action yet and market begins the gradual slide back into a rout?

Tue, 08/09/2011 - 13:40 | 1543117 Greater Fool
Greater Fool's picture

I don't think he can. I think the best he can come up with today is a new acronym or two--programs that do something that 99% of the people in the US don't understand. I don't think he has the okay for QE3.

Conventional wisdom is to sell the news no matter what the news is. Only exception would be an announcement of full-blown QE3 in trillions, or something similarly dramatic. Looking forward to watching the indexes gyrate in just a few minutes now.

...looks like BAC may finally be drifting off its $7 peg...

Tue, 08/09/2011 - 13:55 | 1543175 fuu
fuu's picture

Things starting to drift down now.

Tue, 08/09/2011 - 13:40 | 1543119 slaughterer
slaughterer's picture

It does not look good for an end-of-day QE3 rally to 1160.  

Tue, 08/09/2011 - 13:51 | 1543157 Cangaroo.TNT
Cangaroo.TNT's picture

Is gold the tell?

Tue, 08/09/2011 - 13:52 | 1543158 Shock and Aweful
Shock and Aweful's picture

Honestly...where in the fuck is the demand for this shit coming from?

Is there a way to find out who is buying these treasuries?

I am not well-veresed in how the whole thing works...but I would just about bet the farm that "dealers" were ORDERED to buy this shit....to make sure this auction was well bid. 

Again. . .I don't really understand how the whole auction thing works...or who is even allowed to buy these things...but it just seems very counter-intuitive that it would be so well bid...especially when we are waiting for what most people think will be an announcement of MORE QE from the Bernank....

Thoughts....insights?  Anyone?

 

Tue, 08/09/2011 - 13:53 | 1543167 in-Credible Banker
in-Credible Banker's picture

God - who the fuck is buying this shit paper???????  I have been short UST's for months and am getting KILLED!!!  WTF???

Tue, 08/09/2011 - 13:59 | 1543191 mailll
mailll's picture

Ah, the power of the printing press.  With it, all things are possible.

Bond market manipulation, stock market manipulation, political manipulation, etc. etc.

Tue, 08/09/2011 - 14:20 | 1543268 Doyle Hargraves
Doyle Hargraves's picture

Hyperinflationary collapses...

Tue, 08/09/2011 - 15:26 | 1543504 Youri Carma
Youri Carma's picture

Witness one of Bernankesan’s last ‘Happy Days’ ...

Wed, 09/14/2011 - 05:16 | 1667557 chinawholesaler
chinawholesaler's picture

Advertising Material
Stuffed Animals

Wholesale Vase
Wholesale Umbrella
Wholesale Towel

Wholesale Clothing
Men Beauty Care
Book Light

Pen Holder
Water Bottle
Beauty Equipment

Voice Recorder
Wholesale Gift Bags
Solar Products

Fishing Supplies
Wholesale Hardware Tools
Recorder Pen

Wholesale Pin
Cleaner Products
Sport Support Products

Wholesale Bag
Wholesale Keychain
Wholesale Scarf

Wholesale iPod iPhone
Wholesale Dartboard
Promotional Items

Electrical Gifts
Wholesale Clothes Rack
Wholesale iPod iPhone

Wholesale Flag
World Cup Products
Promotional Gifts

Wholesale Gift Bags
Crystal Gifts
Wholesale Playing Card

Wholesale Racks
Giveaway Material
Promotional Products

Wholesale Clothes Rack
Pet Supplies
Wholesale Hardware Tools

Wholesale Compass
Coin Bank
Wholesale Puzzle

Wholesale Stationery

Do NOT follow this link or you will be banned from the site!