Results of the 5yr Note Auction
- HIGH YIELD 2.395 PCT, 32.83 PCT OF BIDS AT HIGH
- BID-TO-COVER RATIO 2.75,
- PRIMARY DEALERS TAKE $19.58 BLN OF 5-YEAR NOTES SALE, INDIRECT $16.87 BLN
This has been one of the more lackluster responses to a Treasury Auction in recent memory. MBS 4.5's are within a 3 tick range since the 1pm results became available, and 10yr Tsy yields are in a less-than-2 bp range between 3.69 and 3.67.
For MBS, that leaves them at 100-24, near the lower side of a range with the epic 100-28 on the other side. Combine the ever-so-slight weakness in MBS with a similar story in Tsy's and we have only the very beginnings of a chance of reprices for the worse. In almost all cases, that would require FURTHER weakness from where we are now, but if you can't afford to take that for granted, don't. Bottom line should not be missed though: we haven't seen sufficient evidence for reprices for the worse as yet, but if one were forced to pick a side, bonds are a bit weaker than they are stronger since the results.
Here are the more detailed details... Stay tuned in the event that things do get weaker or that we are able to come back with some good news about ongoing stability and lack of volatility.
YIELDS
High 2.395 pct
Median 2.348 pct
Low 2.280 pct
PRICE/ACCEPTANCES
Price 99.906254
Accepted at high 32.83 pct
Bid-to-cover ratio 2.75
AMOUNTS TENDERED AND ACCEPTED (dollars)
Total accepted 42,000,035,600
Total public bids tendered 115,389,848,100
Competitive bids accepted 41,822,967,500
Noncompetitive bids accepted 127,068,100
Fed add-ons 1,032,224,300
Primary Dealer Tendered 80,105,000,000
Primary Dealer Accepted 19,580,565,000
Direct Bidder Tendered 13,141,780,000
Direct Bidder Accepted 5,373,195,000
Indirect Bidder Tendered 21,966,000,000
Indirect Bidder Accepted 16,869,207,500
NOTE DETAILS
Issued date March 01, 2010
Maturity date Feb. 28, 2015
CUSIP number 912828MR8
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