Bond Result: Debacle
May 7th, 2009 1:12 pm | by John Jansen |This auction was and is an unmitigated disaster. The tail (tail is the number of basis points between the auction average and the levels which prevailed in cash market trading prior to the auction) was 9 basis points.
The average yield was 4.288 percent.
I am told it is trading at a profit at 4.27 percent.
This is the government bond equivalent of the GECC deal which came at a large concession yesterday.
It is so cheap to the restof the curve that anyone who bought it is busy selling anything that is not tied down against it.
10 Responses to “Bond Result: Debacle”
By Sam Pan on May 7, 2009 | Reply
Go long NOW!!!!!!!
By John Thomas on May 7, 2009 | Reply
Why is the 10 year rising in price?
By John Jansen on May 7, 2009 | Reply
the yield is rising and the price is falling
By John Thomas on May 7, 2009 | Reply
According to this:
http://online.wsj.com/mdc/public/page/mdc_bonds.html?mod=mdc_topnav_2_3000
The 10 year is bucking the trend. Perhaps WSJ data is wrong.
By John Jansen on May 7, 2009 | Reply
i watch that page all day long. it must be bad data and probably relates to the flip to a new 10 year. The new 10 year note has declined about one point. If you invested $1mm yesterday it is worth $990,000 today. Ouch.
That is a great page but they have this one wrong.
By vol-trader on May 7, 2009 | Reply
does the bond market always sell off in the spring? (rhetorical question)