Foreign Demand Jumps For 3Y Treasuries As Auction Blitz Begins

It's an extremely busy week - and day - for Treasury issuance, which sees a $58BN 3-year note sale at 11:30 am ET, followed by $38BN 10-year reopening at 1 pm ET; and concludes with $24BN 30-year reopening Tuesday in a dramatically abbreviated schedule.

Moments ago, the first of today's two auctions priced, and anyone who was expecting disappointment can exhale: the sale of $58BN in 3Y paper came out solid, pricing at 0.376%, stopping through the When Issued 0.378% by 0.2bps.

The Bid to Cover was not quite as impressive, sliding to 2.318 from 2.689 and not only below the 6-auction average of 2.452 but the lowest since December's 2.275.

The internals were more impressive, with Indirect (foreign buyers) interest jumping and taking down 51.1%, up from 47.8% and above the recent average of 51.1. And with Directs taking 15.8% or the lowest since January's 14.6%, Dealers were left holding 33.1% of the final takedown, also in line with the six-auction average of 34.0%.

Overall, a solid auction and one which set the stage for today's much-anticipated sale of $38BN in 10Y notes at 1 pm.

(Click on image to enlarge)

Disclaimer: Copyright ©2009-2021 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every time ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.