10 yr auction

By Peter Boockvar - June 10th, 2009, 1:19PM

The $19b reopening of the May 6th 10 yr auction was mixed as a higher than expected yield of 3.99% was needed to bring out the buyers where the bid to cover of 2.62 was the most since Sept ’07 and above the one yr average of about 2.30. The level of indirect bidders, mostly foreign buyers, totaled 34.2% which is the most since Nov and also above the one year average of 27%. Bottom line though, the higher yield needed to get this done is what the bond market is focused on and the reason for further selling after the auction.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “10 yr auction”

zebov Says:
June 10th, 2009 at 1:51 pm
At what point do we no longer say “inflation will remain subdued” and we see “some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.”

I’m not saying that point is now necessarily, but I would seriously like to know what the U.S. will have to pay to borrow money before it starts becoming a concern? 5%? 7%? 10%? 20%?
leftback Says:
June 10th, 2009 at 4:46 pm
I think they are already concerned and will have to crash the equity market soon in order to save the debt market.
Simon Says:
June 11th, 2009 at 5:45 am
Oil peaked at approximately double where it is now approximately one year ago. The stock market peaked about seven months before that. This time round the economy is much much weaker. Oil won’t get nearly as high before slumping but having got this far $100 is not out of the question. This time round I would guess that the equity markets will slump the same time as oil.