Today's $24 billion in new 10 Year paper, with a 2.75% cash coupon, sold with a perfect par, or 100.000, price, for a yield of 2.75%, which stopped through the 2.754% When Issued. The auction was strong in every aspect: the Bid To Cover was a solid 2.70, higher than last month's 2.58, the second highest of the past 6 months, and just a fraction below the TTM average of 2.73. The Primary Dealers took down 33.8%, as there was a scramble by the Indirects to buy paper, leaving them with 47.7% of the takedown, well above the 38.3% TTM average, and the second highest going back all the way to November 2011. Directs were therefore left with 18.6%, modestly less than the 22.52% TTM. Overall, a solid auction which added some much needed collateral to an otherwise very illiquid market.
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