Results of the $64 billion sale

  • 4.4 bps tail
  • Bid to cover 2.04 vs 2.30 prior

This is a disastrous auction. The wheels are about to come off the bond market.

The belly is falling apart, US 5-year yields just hit 0.86% on a puke out.


Before the auction I read that today's move was 6 standard deviations. It's gotta be up to 8 or 10 now.

The vast majority of money in the bond market is slow-moving and there will be many bond holders pulling the plug in the day ahead.