The $40,000,000,000 3yr note auction is in and so far, so good as far as MBS and tsy's are concerned.
Here are the official results, note that the "direct bid" percentage of 23.4% is a record and the average is only around 6%. HUGE participation from direct bidders! The bid to cover ratio was 1 bid accepted for every 2.98 submitted, this is about average, nothing special though.
3-YEAR NOTES
YIELDS
High 1.490 pct
Median 1.452 pct
Low 1.388 pct
PRICE/ACCEPTANCES
Price 99.663820
Accepted at high 79.20 pct
Bid-to-cover ratio 2.98
AMOUNTS TENDERED AND ACCEPTED (dollars)
Total accepted 40,000,191,000
Total public bids tendered 119,016,271,000
Competitive bids accepted 39,918,320,000
Noncompetitive bids accepted 81,871,000
Fed add-ons 1,553,093,000
Primary Dealer Tendered 82,866,000,000
Primary Dealer Accepted 15,406,200,000
Primary Dealer Hit Ratio 18.6% of what they bid on
Primary Dealer Overall Award 38.5% of issuance
Direct Bidder Tendered 15,229,000,000
Direct Bidder Accepted 9,342,000,000
Direct Bidder Hit Ratio 61.3% of what they bid on
Direct Bidder Overall Award 23.4% of issuance
Indirect Bidder Tendered 20,839,400,000
Indirect Bidder Accepted 15,170,120,000
Indirect Bidder Hit Ratio 72.8% of what they bid on
Indirect Bidder Overall Award 37.9% of issuance
NOTE DETAILS
Issued date Jan. 15, 2010
Maturity date Jan. 15, 2013
CUSIP number 912828MG2
Despite a slight bit of initial weakness, the charts are in fine position as the 10yr is holding one of it's more aggressive support levels at 3.73. As always, there's plenty of risk for volatility following auctions, but we'll watch the 3.73 and 3.75 levels. For now, we're in good shape. (This chart is scary but dont worry prices have recovered. The FN 4.5 is currently back to +0-17 at 100-18)
MBS Market Alerts
