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Tuesday, July 7, 2020

Tailing 7Y Auction Prices At Lowest Yield In 7 Years

With 10Y and 30Y Treasury both hitting all time low yields, the belly of the curve has been notably slower in catching down to the long end. However, today's 7Y auction helped bridge the gap: stopping at 1.247%, far below January's 1.570% and the lowest yield for the 7Y tenor since 2013, however due to…

30-Year Auction Prices At Lowest Yield On Record

One day after a solid 10Y auction, moments ago the US Treasury closed off the week's coupon issuance with a bang, when it sold $19 billion in 30Y bonds with a bang, thanks to a high yield of 2.061%, which not only stopped through the When Issued 2.068% (the third consecutive stop through), but more…

Mediocre 7Y Auction Tails As Yield Tumbles To 6 Month Low

Following two tailing coupon auctions, which saw both the 2Y and 5Y note sales tail the When Issued as a result of this week's sharp drop in yields across the curve, today was no exception and moments ago the Treasury concluded the week's accelerated bond issuance calendar when it sold $31BN in 7 Year notes…

2Y Auction Tails As Yield Tumbles To 29 Month Low, 2s10s Flattening Accelerates

After today's sharp drop in yields across the curve, and certainly on the short end, where the 2Y yield dropped from Friday's 1.50 close to as low as 1.4264%... ... today's 2Y auction would probably not present any bargains, and sure enough, moments ago the Treasury announced that today's auction of $40BN in 2Y notes…

Stellar 30 Auction Stops Through With Highest Bid-To-Cover In Two Years

After two disappointing, tailing auctions, moments ago the US Treasury sold $16 billion in 30 year bonds in an auction that was a blockbuster. With both the 3Y and 10Y auctions earlier this week, and the first of the year and decade, tailing, traders were quite impressed when the 30Y auction stopped through the When…

First 10 Year Auction Of The Decade Is A Tailing Clunker

After a poorly accepted 3Y auction to start the new decade's issuance of coupon paper, moments ago the US Treasury sold $24BN in 10Y notes (CUSIP YS3) which was a tailing clunker which priced at a high yield of 1.869%, the highest since July 2019, up from December's 1.842%, and tailing the When Issued 1.853%…

Ugly 2Y Auction Hit With Lowest Bid To Cover In 11 Years

Unlike last month's stellar 2Y auction which we assumed was an attempt by investors to frontrun the expansion of the Fed's "NOT QE" T-bill monetization into purchases of coupon paper such as 2Y notes, today's 2Y treasury auction was quite ugly. Stopping at a high yield of 1.653%, the sale of $40BN in paper priced…

Mediocre 10Y Auction Sees Sharp Drop In Indirects As All Eyes Turn To Settlement...

Ahead of today's 10Y Treasury auction, there was some concerns that the Zoltan Pozser report  on an upcoming repo crash would spook buyers and we could get dismal demand as a result of the bond's Dec 16 settlement - same as the quarterly tax remittance day - when liquidity could potentially collapse as we enter…

Strong 2Y Auction As Direct Bidders Surge To 6 Year High

As a result of the holiday-shortened week and the truncated Treasury auction schedule, moments ago the US sold 2Y paper in what was a very solid auction. The high yield of 1.601% was just fractionally higher than last month's 1.594%, and stropped through the 1.605% When Issued, the 3rd consecutive stopping through auction. The Bid…

Stellar 10Y Auction: Foreign Demand Surges; Biggest Stop Through In 12 Months

One day after a blockbuster 3Y auction, moments ago the US Treasury sold $27 billion in 10Y paper in what was a stellar auction of US benchmark paper. Starting at the top, the high yield of 1.809%, while notably above October's 1.5900% following the sharp selloff in the past few days, stopped through the 1.8200%…

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