Posted To: MBS Commentary
Treasury just auctioned $13 billion 30 year bonds . Although the first two auctions of the week were non-events, this reopening did not go smoothly… Demand as measured by the bid to cover ratio was 2.73 bids submitted for every 1 accepted by Treasury. This is just below average but the lowest BTC in the last four auctions. The auction stopped out at high yield of 2.82%, which is 2.7bps above the 1pm “When Issued” yield. This implies the Treasury had a hard time finding willing buyers at current market yields….which explains why primary dealers got stuck with their largest takedown since last October! The street absorbed 55.6% of the auction. That is 10% more than average. Slopdog.. Directs were almost absent, taking down a meager 8.2% of the issue and only 34.6% of what they bid on, this…(read more)
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Original post by Adam Quinones
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