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.

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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.

2 Responses to “10 year note auction”

ben22 Says:
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?
wally Says:
July 8th, 2009 at 3:13 pm
benn22,
double-’U’ shaped… followed by triple-’U’ shaped?