Reply To: Traders Market Weekly: Cracks Widen in China and Emerging Markets

#74529
MoneyNeverSleeps
Participant

U.S. Treasuries reached fresh lows after today’s second note auction—$70 bln in 5-yr notes—also met weak demand. The just-completed sale drew a high yield of 4.553%, which tailed the when-issued yield (4.540%) by 1.3 basis points while the bid-to-cover ratio (2.30x vs 2.47x average) and indirect takedown (65.0% vs 66.9% average) were below average. The post-auction selling has driven the 5-yr yield past its high from two weeks ago to a level not seen since the first week of May while the 10-yr yield has been lifted to a two-week high.

$69 bln 2-year Treasury note auction results (prior 12-auction average):

High yield: 4.917% (4.726%).
Bid-to-cover: 2.41 (2.70).
Indirect bid: 57.9% (64.7%).
Direct bid: 25.5% (19.9%).

$70 bln 5-year Treasury note auction results (prior 12-auction average):

High yield: 4.553% (4.282%).
Bid-to-cover: 2.30 (2.47).
Indirect bid: 65.0% (66.9%).
Direct bid: 15.4% (18.5%).