Tuesday, August 11, 2009

3yr Notes

3 Yr Note rate a lil under 173 bp before $37 Bil was auctioned today. The tail (high yield-median yield) came in at 5.3 bp; approx 3% of yield.

Total tendered by indirect and direct bidders ~ $33.4 Bil or 90.3% of total auction size.
PD's take up $13 Bil - Direct $750 Mil - Indirect $22.95 Bil

Non-PD Competitive BtC 1.41

Total BtC 2.89

PD BtC 5.62

Fed also rolled over $5.7 Bil from SOMA, pushing auction total to $42.7 Bil

Appears that the dealers, playing into the massive supply coming to market, are getting hit on some favorable bids(well above market) as the treasury is forced to pay up. In other words the "pay-off" to take on the auction is sizable.