Treasurys add to gains after strong 10-year auction


"Buyside demand was the highest in a year for any 10-year auction and it showed," says RBS of today's $21B sale of reopened Treasury notes.

Already ahead on the session, Treasury prices added to gains following the auction, and the 10-year yield is now off five basis points to 2.72%. TLT +0.8%, TBT -1.6%.

GMP Securities Adrian Miller notes demand was far higher than for Tuesday's 3-year auction, with a bid-to-cover ratio of 2.92:1. He notes expectations for the Fed to adjust forward guidance next week to assure markets of no rate hikes until 2015 H2.

ETFs: TBT, TLT, TMV, SHY, IEF, TBF, PST, EDV, TTT, TMF, SBND, ZROZ, TLH, IEI, DLBS, TYO, DTYS, VGLT, UST, BIL, SHV, TBX, UBT, VGIT, VGSH, TLO, SCHO, GSY, DTYL, SCHR, LBND, ITE, TENZ, TYD, TYBS, DTUL, SST, DTUS, TUZ, FIVZ, DFVL, TBZ, DLBL, DFVS, TYNS

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Comments (4)
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Probably smoke and mirrors at these interest rates. Primary dealers bid at these auctions, and they have the right to immediately sell to the Fed. Since about 70-80% of demand has been the Fed itself, this might just be a scam.
    12 Mar 2014, 04:14 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2084) | Send Message
     
    Wait, WAIT!!! What about all the doomsayers that keep telling us no one wants the US$ denominated paper? All I hear is how we are going to stop trading oil in US$'s, how we are collapsing and so on.
    This article must be all wrong. Or the doomsayers are all wrong.
    I think I'll wait until we are trading in the Russian Federation's money. [What is their money, rupees, rabids. or what is it, oh never-mind]
    What about the Yuan, [Renmimbi]? No that can't be it. Must be the E$ they are wanting to switch to.
    Right. and when that happens, I will puke in my wastebasket or turn my cat inside out or or or.....
    Like it or not, believe it or not, the US Greenback is still full of demand and luster.
    Forgeddaboud it, I'm takin' my bucks and headin' for the coffee shoppe. They will take my moth eaten bux, just like everyone else in the world, in the past, now and in the distant future.
    Capt. Brian
    The Lost Navigator
    P.S. And to the previous commenter, I say: IT'S ALL A SCAM, ALWAYS HAS BEEN AND ALWAYS WILL BE.
    There was a time when you could trust most any American Businessman, but they had to play the game or be lost in the shuffle. Relax and go with the flow until there is a better system. (With all the crooks out there, what's the Diff whoms money we trade in, as long as I can get dinner and TV.)
    12 Mar 2014, 04:35 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2084) | Send Message
     
    notta lackey gave u a like
    12 Mar 2014, 04:45 PM Reply Like
  • Maverick 5
    , contributor
    Comment (1) | Send Message
     
    Whatever the short term activity, bond yields will rise. And rise, and rise.
    12 Mar 2014, 04:59 PM Reply Like
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