Friday, December 10, 2004

Briefing.com has the straight dope on the 10-year US Treasuries auction concluded yesterday.
Indirect bidder participation for today's reopenings was a meager 9.8%, which although very weak was against the previous reopening's indirect take of a mere 2.9%. International demand for reopenings is expected to be lower than that of new debt auctions, but these last two have shown far weaker than average foreign demand with primary dealers grabbing above average amounts.

. . . The auction awarded investors 4.150%, the lowest since the Mar 11 auction drew 3.752% and lower than the previous auction of 4.28%. Today's low rate comes in front of an FOMC meeting that is expected to give an additional quarter-point hike to the fed funds rate. Investors obviously have little interest in buying with yields at three week lows and in front of an expected rate increase.
Nobody but central banks want these things.

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