dChan
Anonymous ID: 10da87 Jan. 8, 2020, 12:21 p.m. No.7754372   🗄️.is 🔗kun   >>4415 >>4426 >>4446 >>4662 >>4680 >>4752 >>4794

First 10 Year Auction Of The Decade Is A Tailing Clunker

 

After a poorly accepted 3Y auction to start the new decade's issuance of coupon paper, moments ago the US Treasury sold $24BN in 10Y notes (CUSIP YS3) which was a tailing clunker which priced at a high yield of 1.869%, the highest since July 2019, up from December's 1.842%, and tailing the When Issued 1.853% by 1.6bps, the biggest tail since August.

 

The internals were somewhat better, with the bid to cover rising fractionally from 2.43 in Dec to 2.45, and also above the six auction average of 2.40. The buyside bid was also on the weaker side, with Indirects taking down 55.2%, below the 56.1% in December and below the 59.7% six auction average. And with Directs taking down 16.1%, below the 19.4% from last month if above the 13.9% recent average, Dealers were left with 28.7% of the takedown, although by the time the year is over they will likely be selling this back to the Fed which will soon have to expand its "NOT QE" beyond Bills and to Coupon securities.

 

Overall, the first two auctions of the year have left a bitter taste in investors' mouths, and one wonders if this is a harbinger of primary market demand for the rest of the year and decade.

https://www.zerohedge.com/markets/first-10-year-auction-decade-tailing-clunker

Anonymous ID: 10da87 Jan. 8, 2020, 12:37 p.m. No.7754529   🗄️.is 🔗kun   >>4662 >>4752

BLACKHAWKS doin' some fishing FFAB123 all three craft share the same call. Look at list on right. Plane dropped off

Same call sign doing this yesterday with three craft sharing call. Not unusual to see them but not this low.

Anonymous ID: 10da87 Jan. 8, 2020, 12:43 p.m. No.7754566   🗄️.is 🔗kun

>>7754481

not dumb and did not mean any ill will.

those dealers are so loaded up on debt that they have to put in a token appearance at these auctions or they lose the status as a PD. The demand is split across several buckets: direct, indirect and PD's. They have changed the way they classify who in what category so many times it's not really relevant any longer. The big change habbened just prior to the 2008 event where the Treasury was trying to make it look like all the organic buying was retail or "Mrs. Watanabe"-a financial term (joke) for how they made it appear that all this was being bought by old japanese pensioners.

That it displays a "tail" is not a good sign. It means overall weak demand.