Auction Tails

May 29th, 2014 8:13 pm | by John Jansen |

Bloomberg reports that the auction tails on the 2s 5s and 7s was the first time that there was a tail for each in the same cycle since July 2012.

Via BLoomberg:

RATES: Trio of Auction Tails Is First Since Mid-2012 Yield Lows
2014-05-29 18:32:11.535 GMT

By Monika Grabek
May 29 (Bloomberg) — Tails in each of this week’s UST
auctions are the first for the 2Y/5Y/7Y cycle since July 2012,
when benchmark yields reached record lows.
* 0.2bp tail in today’s $29b 7Y auction followed 0.4bp tail in
yday’s $35b 5Y auction and 0.2bp tail in Tuesday’s $31b 2Y
auction, according to Stone & McCarthy
* Trio of tails is first since July 2012, when 2Y, 5Y and 7Y
auctions were awarded at record low yields
* 2Y drew 0.220% on July 24, 2012, 0.1bp tail
* 5Y drew 0.584% on July 25, 2012, 0.9bp tail
* 7Y drew 0.954% on July 26, 2012, 0.4bp tail
* UST yields have declined this week, with 7Y-30Y reaching YTD
lows while shorter maturities touched lowest levels since
March, amid expectations for additional ECB easing next
week, month-end buying and short positioning
* Last trio of tails in 3Y/10Y/30Y cycle was in June 2013,
according to Stone & McCarthy

Be Sociable, Share!

Post a Comment