Wednesday, January 12, 2011

Ten Year Note: Somebody's Buying

 This info is reported by Econoday on Bloomberg:

Coupon Rate2.625% 
Total Amount$21 B 
Yield Awarded3.388% 

New Year investment inflows are flowing into Treasury auctions this week especially today's 10-year auction (a reopening of the 2.625 percent November issue). Retail demand appears to be especially strong as dealers ended up taking only 39 percent of the auction vs a 46 percent average. (Scanner: emphasis added) Coverage of 3.30 is well above average. Topping it off, the auction stopped out at 3.388 percent, two basis points below the 1:00 bid. Money is moving into the Treasury market following the results.

Scanner: The chart below shows that the Total Amount for 2009 is identical to the amount of the auction in January 2011. The amount with the annual reports is the average for monthly auctions in the year. The 2010 monthly reports are showing the monthly auction amounts.

Data Source: Haver Analytics

Now here is the end-of-day graph of the dollar index: