Bond Result
June 11th, 2009 1:07 pm | by John Jansen |It was a very strong auction which stopped at 4.72 percent.
The foreign central banks bought near ly 50 percent of the issue.
http://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/R_20090611_1.pdf
14 Responses to “Bond Result”
By ndk on Jun 11, 2009 | Reply
I wish I could see bsetser’s expression right now.
By Jason Ruspini on Jun 11, 2009 | Reply
Indirect bidders *include* foreign central banks. Must we conclude that all of those bids are actually from central banks?
By John Jansen on Jun 11, 2009 | Reply
That is my understanding
By woojin on Jun 11, 2009 | Reply
Hi, what’s your take on the $135 B of US bonds that were being smuggled into Switz last week? Saw it on Denninger but I can’t find much on it in MSM. Is the knee-jerk reaction that these are counterfeit? Thanks .W
By Forrest Bump on Jun 11, 2009 | Reply
By the way, Alabama School Authority failed to sell $285B Bond. I think it’s telling something.
By Jason Ruspini on Jun 11, 2009 | Reply
This study shows that indirect bids have historically been a rough proxy for foreign central bank bids, but by no means account for 100%.
http://www.newyorkfed.org/research/current_issues/ci13-1/ci13-1.html
By Bman on Jun 11, 2009 | Reply
Run Forrest, run…. love the moniker by the way.
By Doug P on Jun 11, 2009 | Reply
I think the Fed/Treasury freaked out at the 10 year results and called in all their favors to get this one sold smoothly.
We’ll see if they can do a repeat performance next month, now that the 30 year auction is a monthly occurrence.
Those who went long TLT, congrats. Hope you set some stops.
By zjin on Jun 11, 2009 | Reply
Those who went long TLT, congrats. Hope you set some stops.
———————
I almost prepared to double down my TLT this morning. Glad I do not have to go down that path. Maybe a quick profit taking now.
By Gary on Jun 11, 2009 | Reply
>>> “Indirect bidders *include* foreign central banks. Must we conclude that all of those bids are actually from central banks?”
According to the Fed’s own studies, foreign central banks make up the largest share of indirect bidders, but this share averages about 46% — slightly less than half
By Gary on Jun 11, 2009 | Reply
Here is the link to the Fed’s study:
http://www.newyorkfed.org/research/current_issues/ci13-1/ci13-1.html
By Bman on Jun 11, 2009 | Reply
I believe it can include anyone who places a competitive bid through a dealer or direct bidder source – maybe someone could confirm that so I don’t mislead Jason.
By Gary on Jun 11, 2009 | Reply
If you really want to understand indirect bidders, see the link above… but the executive summary:
foreign and international investors account for the largest share of purchases by indirect bidders (averaging 46 percent),
investment funds (32 percent)
dealers and brokers other than primary dealers (18 percent)
remaining investor classes combined (4 percent)”