Bid/Cover 3.45
Total Amount $21 B
Yield Awarded 3.735%
The 10 Year auction was among the healthiest auction in the last 6 months with Bid/cover coming in at 3.45 while indirect bidders taking 35% of the amount. If tomorrow 30 year auction turns to be healthy, Gold may have topped for [...]
I just realised that I and Bill Gross have something in common. We hate Friday nigh touts and cocktails; for exactly the same reasons. And in stead I am more of the Seinfeld re run guy.
We also have the same view of the world. “Investors: Look east” has been our battle cry.
But that is where [...]
7 Year Auction results: Trudging Along | read this item
Results were very strong for the Treasury’s monthly 7-year note auction where the large $32 billion size failed to water down coverage which came in at 2.98 for the highest rate since the coupon’s February 2009 launch. In another sign of strength, the auction stopped out at 3.078 percent, about 1/2 basis point below the [...]
5 Year bond auction Resuts: Sloppy | read this item
Non-dealer bidding was on the light side at the 5-year Treasury auction, a contrast to yesterday’s strongly bid 2-year auction. Bidding was sloppy for today’s $32 billion auction, which stopped out at 2.395 percent for a 2 basis point tail. Indirect bidders took down 40 percent of the auction vs. a 50 percent average. The [...]
Breaking News: Auction Results Feb 22: Much Healthier | read this item
After the disaster last auction seen in 30 Year and 10 Year bonds, todays results are attached
3 Month Auction
Primary bidders took 43%, Direct bidders took 17% while Indirect Bidders took a healthy looking 40% of the $26.3 Bn auctioned. The yield went 0.1% and bid/cover ratio of 4.04 which can be considered a very [...]
It is Happening: China are slashing US Treasuries | read this item
For much of last year, macro analysts debated and beat their heads whether China will actually back up its aggressive posture with some action. China in Dec slashed its treasury holding by $34 billion. The numbers for January are not available but I fear they have been net sellers in Jan as well.
Read our earlier [...]
The return of the Prodigal: Junk bonds make a comeback! | read this item
Bond pricing nowadays indicates almost no risk of corporate bankruptcies or default — a stark contrast from a year ago. With financial markets operating more normally, yield-hungry investors also see potential for decent returns from high-yield bonds this year, even after the sector’s stunning gains in 2009.
The biggest help for companies looking to sell high-yield [...]
US 30 Year Debt Auction: Trend to failure? | read this item
The latest 30 year bond auction have been dissapointing with some already terming it as a failure. This is an opportune time to analyse the trends in bond markets. There is almost a pall of gloom across the many who understand bond market mechanics and we will try to break down two of the most [...]
PIMCO: We will be net seller of US,UK bonds | read this item
I have been waiting all through 2009 to report this news item but it never came. But as they say destiny is written and no matter how hard you try, the inevitable has to happen.
US and UK bonds are going down the toilet and will pull the whole capitalistic financial system along with it. [...]
10 Year auctions: Well bid | 
7 Year Auction results: Trudging Along | 
5 Year bond auction Resuts: Sloppy | 
The return of the Prodigal: Junk bonds make a comeback! | 
US 30 Year Debt Auction: Trend to failure? | 
