Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Stellar Demand For 30Y Auction As Curve Comes Crashing Down

Courtesy of ZeroHedge View original post here.

After an ugly 3Y auction, and a solid 10Y sale yesterday, moments ago the Treasury sold $24BN in a 29 Year-10 month reopening of cusip SZ2 ahead of today's Fed minutes. But if one thought investors would show any nerves about the coming taper in today's auction, boy were they in for a surprise.

That's because the auction was nothing short of spectacular: stopping at 2.049%, the auction stopped through the 2.062% When Issued by 1.3bps, which aside from last month's 1.8bps stop, was the first non-tailing auction in 5. That said, it was the highest auction for the 30Y tenor since June's 2.172, even if there was no concession in today's session as a result of the sharp grind lower in yields on the long end if not the short one.

The Bid to Cover of 2.3595 was solid, and aside from September's 2.486, was the highest since April; it was also above the 2.31% six-auction average.

The internals were more remarkable, however, and with Indirects taking down a near record 70.55% (the third highest ever), And Directs taking down 17.2%, or the same as last month, Dealers were left holding on to just 12.29%, the lowest on record!

In short, an absolutely stellar auction and one which appears to confirm that the bear flattening is here to stay because with every tick higher in short-term rates, the long end drops as the curve prepares to flatten and then invert ahead of the coming recession which the Fed will tighten right into.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!