The Treasury just auctioned a record $40bn in 3yr notes, $1 billion more than the October issuance. The bid to cover ratio was 3.33 bids for every one bid accepted. The auction saw VERY high demand!
The auction stopped out a high yield of 1.404%, 2.8 basis points below the 1pm 1.432% "When Issued" yield . 38.42% of the bids were accepted at the high yield.
Here is the intraday 3yr note...
Primary Dealers tendered $85.85 billion and were awarded $9.50 billion. 11% of what they bid on and 23.8% of the total auction amount. Much lower than average of previous three auctions.
Direct Bidders tendered $9.12 billion and were awarded $2.99 billion, 33% of what they bid on and 7.5% of the total auction amount. More than average of previous three auctions.
Indirect bidders tendered $37.98 billion and were awarded $27.23 billion, 72% of what they bid on and 68% of the total auction. Call Guinness that's a record! Huge demand from indirect bidders...
Here is a look at recent auctions...
Since the auction results were announced, the 10yr note is trading near the yield lows of the day at 3.478% while the FN 4.5 has barely budged. A strong auction, but volume remains muted in the rates market.
The FN 4.0 is currently +0-04 at 98-25 and the FN 4.5 is trading +0-04 at 101-13.
The dollar is just above its weakest print of the day, Oil is holding near the it's intraday highs, Gold is modestly cheaper at $1,100/ounce, and the S&P continues to move sideways at 1,086.