10-Yr Treasury Auction Results

Yesterday, the US Treasury Department said it received bids totaling more than $54 billion for the $22 billion worth of 10-year notes sold. Thus the bid-to-cover ratio was 2.47, up from 2.21 in February's auction. This indicates the demand for U.S. debt remains healthy.

10-Yr U.S. Treasury auction summary:

• $54.44 billion Tendered
• $22.00 billion Accepted
• CUSIP Number 912828KQ2
• Series C-2019
• Interest Rate 3-1/8%
• High Yield: 3.19%
• Median Yield: 3.139%
• Low Yield: 2.900%
• Issue Date: May 15, 2009
• Maturity Date: May 15, 2019

For more details, see:

• US Treasury Rates at a Glance
  
• LIBOR Rates at a Glance
  
• US Treasury Announcement - PDF File

Comments

[Kirk Lindstrom:]

Related ETFs
iShares Barclays 1-3 Year Treasury Bond - SHY
iShares Barclays 3-7 Year Treasury Bond - IEI
iShares Barclays 7-10 Year Treasury - IEF
iShares Barclays 10-20 Year Treasury Bond - TLH
iShares Barclays 20+ Year Treas Bond - TLT

Charts at "US Treasury Rates at a Glance" tinyurl.com/T-Rates

May 07 09:07 AM

[altaman:]

"This indicates the demand for U.S. debt remains healthy."

Huh?? You mean that because someone bought a chunk of this junk (major Treasury dealers must buy) , even at sharply higher rates/lower prices, then everything is just hunky dory!? That is not the conclusion that I reach given the disaster in the 30-year auction today and the huge losses suffered by holders of long paper since the end of December 2008.

My advice to your readers regarding the torrent of Treasury fluff to come is that the demand for US debt is NOT healthy so consider commodities, precious metals, AUD and reverse ETFs such as TBT. The 10 year is going back over 4% and beyond in the relatively near future and will stay there for the foreseeable future.

May 07 03:00 PM

[Kirk Lindstrom:]

"My advice" to "my subscribers" is given in my newsletters. FWIW, I have not recommended long bonds in some time.

In the article, I did not recommend a long or short position in 10-year treasuries. I CORRECTLY stated demand was healthy at the time of the auction because there was $54 billion bidding for the $22 billion offered.

Most people now are better off buying CDs. You could get a 4%, 5-Year CD at PenFed CU www.verybestcdrates.co... at the time of the auction which was a lot better than what Treasuries paid.

You need to beware of tracking error on those short Treasury ETFs. If they are anything like the OIL ETF for tracking oil prices, you could be very unhappy. See "OIL ETF Disappoints Oil Investors" at kirklindstrom.blogspot...

Jun 16 01:56 PM