Unmemorable 7 Year Closes The Week's Trio Of Bond Auctions

Tyler Durden's picture

Unlike the past last auctions in the current week, in which the 2 and 5 year both priced far weaker than expected, and saw a surge in Direct bidders absorb the absence of foreign demand, today's 7 Year auction was largely unmemorable. Granted, it did price with a 1.5 tail, coming in at a high yield of 2.28%, after with the When Issued trading at 2.265% second into the close, indicative of last minute weakness, but the other metrics were largely in line. The Bid To Cover came at 2.63, same as last month's, although well below the LTM average of 2.84%. The internals were stronger with Directs not surging as many has expected, and taking down just 9.26% of the auction, meaning Primary Dealers had to consume 51.2% of the auction. That left foreign bidders recycling their trade surplus to take on about 39.55% of the auction, better than last month's 32.17% but worse than the 12 month average of 43.33%. As noted: rather uneventful and on the weak side. What is more disturbing is that absent a debt ceiling hike, this may well be the last bond auction for a long, long time. And without more auctions, what will Bernanke monetize?

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buzzsaw99's picture

Bernanke is too busy licking wall street's balls to worry about what to monetize next.

caerus's picture

bit off topic but anyone checking out tropical storm Don?  CL futures anyone?


per CNN "ExxonMobil began evacuating nonessential personnel from offshore facilities in the path of the storm Thursday...Gross production of approximately 8,000 bbl per day of liquids and 50 million cft per day of nat gas was shut down"

Iam_Silverman's picture

Maybe we will get some rain.  I hope and pray we do.

SheepDog-One's picture

Without more bond auctions what will Bernank monetize? Hell thats easy, more 100 P/E wonders such as LULU NFLX AMZN BBY garbage. Got to keep those ETF's and 401K zombies placated till theyre robbed blind one morning!

djsmps's picture

Earlier, on CNBS, they said that the Treasury announced another auction for Monday.

TSA Thug's picture

"this may well be the last bond auction for a long, long time."


Even if, it does not mean that bond sales will completely disappear. We need a new price discovery venue anyway. I do not like auctions.

There is a lot of hot corporate money that will be knocking on the bond sale door very soon. Let's not get distracted by the noise.


--You WILL Obey!

Zero Govt's picture

"And without more auctions, what will Bernanke monetize?"

Probably FRN wallpaper ...Hell he's on a roll, let's not stop him

Hero Protagonist's picture

This is an example of what I'm talking about, the lack of QE has not had the HUGE impact many many people here thought it would.

alexanderstollznow's picture
This is an example of what I'm talking about, the lack of QE has not had the HUGE impact many many people here thought it would.

no need to be so polite! is completely and utterly contrary to months of premature gloating by many people here, and contrary to the central theme of the ideology.


scopelabs's picture

SUCH a MIXED set of emotions: i want them to fail cause i am SHORT 10s of millions of Tres , yet IF i rite and get paid = is the Fiat crap-cash worth anything?

its painful and you cant stay and cant leave ...

we all cry and talk about avg Joe and his job being gone and babyboomers lost retirement $ and get -0- % on what they have left!



whst about the hard working saving achiving (non leveraged cash paying) motherfuckers like me that have and made some decent $ and cant put i bank (FDIC has 1/8 penny to dollar), can only hold so much Gold and silver without even MORE security thatn the overblown situation that is already in place , cant leave Cuntry! via they will tax me for a 4th time , try and hold assets and make more $ BUT 2 waht end??? as they destroy value of the Dollar etc ...the responibility of managing own own net worth has become fulltime job via their inept fuckups!

G Scopelabs.net




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