10 year note auction
By Peter Boockvar - July 8th, 2009, 1:11PM
The reopening of the 10 year note auction was solid as the yield was 4 bps lower than where the when issued was trading and the bid to cover of 3.28 was well above the one year average of 2.31 and at the highest level since at least 1994. This also comes in the context of yields being 60 bps lower than the June reopening auction, thus not dissuading the buyers. The rollover in the stock market and large drop in commodity prices certainly brought out the buyers as risk aversion trumped inflation concerns, $ weakness, government finances and quantitative easing.
July 8th, 2009 at 2:51 pm
LB has been developing this idea over the last month or so and now it is playing out:
The rollover in the stock market and large drop in commodity prices certainly brought out the buyers as risk aversion trumped inflation concerns, $ weakness, government finances and quantitative easing.
Is this the start of the pullback for stocks or just the first real headfake down during the countertrend rally?
July 8th, 2009 at 3:13 pm
benn22,
double-’U’ shaped… followed by triple-’U’ shaped?