While on the surface today's $32 billion 3 Year auction was uneventful, pricing at the ZIRP normal of 0.411% (31.53% allotted at the high), just inside the 0.415% When Issued, which means that few if any expect any major pick up in short-term rates above zero for the next three years at least, and at a 3.587 Bid To Cover, just shy of January's 3.623 and right on top of the last twelve auction average, it was the internals that the move was once again apparent, with Direct Bidders (red) once more rising their take down to some 26.9% - the highest on record, or at least going back to 2003, while Indirects ran away taking down just 18% of the auction, likewise a record low in the past decade of the 3 Year's history. The rest, as usual, belongs to the Primary Dealers, who will promptly transform said collateral, and what they don't see back to Bernanke, will be used as dry powder to expand the S&P multiple even more, and buy what ES they don't already own. Because, for now at least, in the immortal words of Chuck Prince, the music is still playing...
Record High Directs, Record Low Indirects Round Out Today's 3 Year Treasury Auction
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