$24 Billion 10 Year Bonds Price At 3.21%

And so another $24 billion in liquidity is sucked out of the market, at least temporarily until PDs flip Cusip QN3 back to the Fed. The bond priced at a 3.21% high yield, and a 3.00 Bid To Cover, the lowest so far in 2011. Nonetheless, the bond came inside to the WI which was about 3.222%, confirming the risk off aspect of today's market. Primary Dealers took down 44.4%, with Direct responsible for 8.4%. This means Indirects were left with 47.2%: better than April, but the second lowest of 2011, only better than April's 42.4%. The other question of how this will settle, together with yesterday's $32 billion and tomorrow's $16 billion, under the debt ceiling, we will discover in a few days.


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