Very Strong TIPS Auction Via CRT
October 5th, 2009 1:12 pm | by John Jansen | 10-year TIPS auction stops at 1.51% vs. a 1.54% 1-pm bid WI.
* Bid/Cover 3.12 vs. 2.10 reopening average — tied for the 2nd highest ever
* Dealers were awarded 55.6% vs. 65.9% average of the last four Reopenings.
* Indirects get 44% vs. 35.6% norm — strong for a reopening.
* Directs take 0.4% vs. 1.2% average.
* Dealer Hit-Ratio: Dealers take 24% of what they bid for vs. 40.2% norm.
* Indirect Hit-Ratio: Customers take 53% of what they bid for vs. 67% norm.
* Treasuries
were trading flat ahead of the auction, giving up the bid from this
morning. Since the results, Treasuries have done little — effectively
unchanged on the day.
* Volumes in the nominal Treasury market
have had a modest volume day, at 71% of the 10-day moving average. 2s
and 5s were the most active issues at 28%.
