Strong 5-year auction lifts Treasury prices


Treasury yields drop after strong demand at today's $35B 5-year note auction, which came in with a bid-to-cover ratio of 3:1, and indirect bidders taking down 51% of the action.

The 5-year yield slides six basis points to 1.67% and the 10-year yield drops five bps to 2.70%. TLT +0.4%, TBT -0.8%

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Comments (5)
  • James Bjorkman
    , contributor
    Comments (2778) | Send Message
     
    So much for the Janet Yellen hit job. Yield curve steepening again. We have a full year before anything happens, bond traders deal in minutes and hours. and days.
    26 Mar 2014, 01:26 PM Reply Like
  • bbro
    , contributor
    Comments (11227) | Send Message
     
    Average interest rate for all treasury notes outstanding is 1.802%....
    26 Mar 2014, 02:55 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Yes, and the average inflation rate throughout the yield curve is about 7%. This is defined by the dictionary definition of inflation: "an increase in the supply of money", not the rigged CPI figures. Somebody is going to end up with the Old Maid.
    26 Mar 2014, 03:02 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13475) | Send Message
     
    It is not 1 or 5 year auctions that is a concern. It is the long dated US treasuries that no one but the Federal reserve with QE wants that is a concern, especially since foreign demand is almost non-existent and US participants can't or won't buy them.
    26 Mar 2014, 11:30 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Looks like they are wising up. Not good news. That means serious inflation ahead.
    27 Mar 2014, 11:54 AM Reply Like
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