Wednesday, June 9, 2010

Ten Year Bond Still in Demand

Good news continues for the US Treasury, and the broader bond market, following today's ten year note auction. This information is found on Bloomberg today following the auction:

Results are solid for the Treasury's monthly 10-year note auction, which this month is a reopening of the May issue. The $21 billion auction stopped out right at the 1:00 bid, at 3.242 percent with coverage at a better-than-average 3.24. Non-dealers took down 54 percent of the auction, no better than average. Slightly smaller auction sizes helped results for both this auction and yesterday's 3-year auction. Auction size for tomorrow's 30-year auction is also on the low side, at $13 billion.

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.