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!

Near-Record Foreign Demand For 2Y Treasury Auction Despite Sizable Tail

Courtesy of ZeroHedge View original post here.

Unlike last month's ugly 2Y auction which saw the biggest tail (at 1.1bps) in over a year when there was virtually no potential short squeeze as the repo market indicated, some were predicting that with the 2Y trading special in repo would make today's auction smooth sailing. They were wrong, at least when looking at the headline results from today's $56BN 2 year auction, because printing at a high yield of 0.769%, the auction stopped through the When Issued 0.763% by 0.6bps. It wasn't nearly as bad as last month's 1.1bps, but it wasn't exactly pretty, and certainly crushed expectations for a stopping through.

However, while the headline data may have been ugly, the internals were far more solid, with the Bid to Cover rising from 2.358 to 2.553, while while an improvement was just barely above the six-auction average of 2.50.

The internals were ever stronger, with Indirects surging to 61.4%, a remarkable spike from the 45.62% in November, and the second highest on record, with just June 2009 higher. And with Directs taking down 14.4%, dealers were left with just 24.2% which in turn was one of the lowest on record.

In response to the mixed auction, the market shrugged, with the 2Y yield trading flat and the 10Y trading near session lows.


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!