- 1.459% vs 1.516% exp (that’s a HUGE miss)
- $21 billion in 10-year notes
- Prior record low was 1.622% in the June auction
- 3.61 bid-to-cover vs 3.06 in June auction
- The Treasury will sell 30-year notes tomorrow
Massive, unexpected demand for safety. Ten-year yields now just 3 basis points from the all-time low set in early June.
There is talk about the large ‘direct’ bid at 45.5% but I expect that’s because China and Japan were recently given the ability to bid directly rather than through primary dealers. The takeaway from that is that it may not be investors or smart money that is buying out of fear, it could be that Japan/China were holding off on purchases until now.
