Wednesday, April 7, 2010

10 Yr US Treasury is in Demand

Here is the detail from the Treasury, including some explanation of terms, following today's ten year note auction. Also, this information is found on Bloomberg today following the auction:

Buyers have returned in force to Treasury coupon auctions. The April 10-year note auction, a reopening of the February 3.625 percent coupon, posted a bid-to-cover ratio of 3.72 for the highest ratio in the last nine years of data.

The $21 billion auction stopped out at 3.900 percent, 3-1/2 basis points below the 1:00 bid. Retail demand was very strong with direct and indirect bidders taking down 59 percent of the auction vs. an average of 51 percent.

The chart below shows that the Total Amount for 2009 is identical to the amount of the auction in January 2010. The amount with the annual reports is the average for monthly auctions in the year. The monthly reports are showing the monthly auction amounts.