Auction came right on the screws, which, in spite of the relatively small indirects number, suggests it was actually strong.
Quote from invertedCurve:
the treasury market is no beginners market I have cash access, bloomberg access and a squawk.
Look at Bloomberg or Reuters If ZN gets through 16 it could run to 24 watch out. Go through the anyone else short the 30 yr bond thread we talk about the whole curve. Real traders trading real $ on that one.
Quote from smalls:
Bigpipn,
maybe that would explain why someone had a nice lunch sent in for us today....
seemed odd that it went so well though, bucked the post auction trend it seems.
Why you surprised? Firstly, the dealers cheapened it up nicely into the auction. Secondly, there will be no UST supply for a couple of weeks now (TIPS don't count). Thirdly, it's month/qtr-end time, so there's a natural need for duration. Fourthly, the Fed's buying again next week. This result was not a surprise.Quote from Bigpipn:
Interesting. Auction did come right inline as expected. Wonder if the Us Gov't threw a party of hookers-n-blow for Asian buyers from the missing 9/11 Pentagon funds.
On a serious note, I am quite surprised the Auction went so (relatively) well.