May 1st, 2010 
admin Posted To: MBS Commentary
The Treasury has successfully auctioned $42 billion 5 year notes. This was the 6th consecutive offering at this size and likely one of the last times as the Treasury is expected to reduce auction sizes in the months ahead. The bid to cover ratio, a measure of auction demand, was 2.75 bids submitted for every one accepted by the Treasury. This is above the ten auction average of 2.32 and the five auction average of 2.70 Bidding stopped out at a high yield of 2.54%, slightly below the 1pm "When Issued" yield. Primary Dealers, aka the street, took 36.7% of the issue. This is below the ten auction average of 39.9% of the total auction award and the five auction average of 43.0%. This is a positive as it implies dealers were not forced to offset a lack of bidding from another account….(read more)
View full post on Mortgage News Daily
Posted in 
Tags: 
