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发表于 2010-6-9 12:00 PM
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10-year auction very strong.
6/9/2010 1:12 PM EDT
The Treasury's $21 billion 10-year auction went extremely well. The yield came 1bps lower than pre-market trading at 3.242%. The bid/cover ratio was 3.24x, up from 2.96x in May. This is very strong when compared with the 2009 average of 2.62x and the 2008 average of 2.30x. Fundamental demand for Treasuries is as high as ever.
Indirects took 41.9% of this auction and bid for 68.6% of the auction. Perhaps more interesting is direct bids won 25% of this auction, an all-time high. Indirects are typically foreign central banks, but directs are typically very large private accounts, either domestic or foreign. The strong demand from directs dispells this myth that the U.S. is reliant on foreign governments. Private investors have lead the recent rally in Treasury rates. |
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