Yields Spike As 10Y Auction Tails

Well, that escalated quickly. 

terrible 10Y auction

— Walter White (@heisenbergrpt) February 8, 2017

10Y yields just spiked following a nasty looking, tailing 10Y auction. Here’s the breakdown:

• Treasury Sells $23b 10Y at 2.333% vs 2.314% WI Yield at Deadline
• High yield 2.333% vs the last auction 2.342%
• Bid-to-cover 2.29 vs last auction 2.58
• Dealers awarded 30.6% vs last auction 20.7%
• Direct bidders awarded 4.4% vs last auction 8.7%
• Indirect bidders awarded 65.1% vs last auction 70.5%

  (Click on image to enlarge)