Silver as an investment

Poor 30 Year Auction Accelerates Bond Market Selloff / by Tyler Durden / Sep 13, 2016 1:12 PM

After yesterday’s ugly 3 and 10Y auctions, of which the latter is still trading at a record “fails” charge in repo, there were few hopes for today’s 30Y auction, especially in light of the dramatic blow out in yields profiled moments ago. Well, it’s a good thing expectations were low because the just concluded reopening of $12 billion in 29Y 11 Month paper was the latest bond debacle, with the paper tailing the When Issued by 1 bps, printing at 2.475% compared to the 2.465% When Issued.

The internals were even worse: the Bid to Cover to 2.129, down from 2.24 in August, the lowest since February and far below the 6mma average of 2.35. Indirect interest dipped from 61.5% to 57.9%, below the 63.9% average, leaving 37.5% to Dealers, the highest since last August, while Directs ran away, as they did in yesterday’s auctions, taking down just 4.6% of the paper. This was the lowest Direct Bid since 2009.


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