It had a High Yield of 1.680%; the 10-Year Yield was trading around 1.620% prior to the 1:00PM Announcement.

The Direct Bidders were kind of a no-show, taking away 5.2%. The Indirect Bidder takeaway percentage looks normal, whereas the PDs took away 54.2%, making up for the DBs lack of participation, I would say.

Treasury Release (.pdf):

http://treasurydirect.gov/instit/anncere....

Oh oh

That means economic recovery, expect a big equities rally.

For the prior 10-Year Acutions held this year, the average DB takeaway is 23.6%. The low takeaway was 15.8% (in May), and the high takeaway was 45.4% (in July). Dropping the high and low readings, the average DB takeaway for the prior Auctions is 20.8%.

expect qe3 of 2.0 T

Could someone please explain the significance of this?

"Get Lawsky on a leash--NOW!" :)

From ZH:

A month ago, the US issued $21 billion in 10 Year paper in what could only be dubbed as a "WTF Auction" - one in which every record was broken as demand for paper could seemingly not be satisfied. At 1 PM on July 11 the paper priced at 1.459%, a record-shattering 6 bps inside of the When Issued. What a difference a month makes. Not a month later and the just completed issuance of $24 billion in 10 Year paper could be classified as a collapse in demand, as the auction priced at 1.68% or a whopping 2.5 bps tail. Just as notably, after hitting an all time of 3.61 high last month, the Bid to Cover imploded to 2.49: the lowest broad demand indication since August of 2009. The internals were just as loopy: Direct take down imploded from a record 45.4% of total to just 5.2%, the lowest since November 2009, and with Indirects refusing to budge, the Primary Dealers were forced to take down 54.2%, or the most since October of 2011. And while the lack of interest was not surprising, especially in the aftermath of the just released Elliott Management letter (more on the later), the violent swings in demand for US paper at issue are starting to make quite a few desk traders very concerned. Because all it will take to crush the credibility of the bond market next is a few more such wild swings, and Geithner and Bernanke better hope that Knight can somehow be a DMM in TSY paper as well.

As you may know, Rickyd, DBs are (quoting Treasury) "Non-Primary dealer submitters bidding for their own house accounts." Clearly, someone (or, someones) who would normally participate did not do so today. To attempt to answer the "why?" of the no-show(s) is more speculative, of course. Given that the FRBNY just dusted off the cobwebs of its TOMO program, my first guess is that a lack of liquidity is being felt by this someone (or, these someones). Another theory, I suppose, would have it that someone (or, someones) decided that front-running more QE wasn't such a good idea at this juncture.

Understood..thanks Argos.

1.67 area is resistance...if it breaks north I think we pass 2% and THAT will not be good for anyone.

Perhaps China was a no bid?

Quote:

Perhaps China All-Your-Islands-Are-Belong-To-Me was a no bid?

FIFY

All I can say is it will be interesting when they launch their carrier in (hunt for red) October.

22% moves in the 10 yr are perfectly normal.

These aren't the coupons you are looking for.

Move along.