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IPFS News Link • Treasury

Bizzare Plunge In Direct Demand Continues In Today's 3Y Treasury Auction

• https://www.zerohedge.com, by Tyler Durden

Today, this Direct bidder "boycott" continued, when moments ago the Treasury sold $37 billion in an upsized 3Y auction whose most notable feature was the plunge in the Direct takedown.

First, the big picture: the 3Y auction stopped at a high yield of 2.983%, just below last month's 2.989% and tailing the When Issued 2.980% by 0.3bps, and the 2nd highest since May 2007. The bid to cover printed at 2.54, also in line with last month's 2.56 if below the 6 auction average of 2.67.

However, it was the internals where the surprise lay again, because while Indirects took down a strong 49.1%, the highest since July, and above the 42.1 6 auction average, the Directs tumbled again, taking down just 3%, or $1.1 billion, of the auction after tendering $2.8BN in bids. This left Dealers holdings 47.9% of the auction, the highest since December 2016.


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