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$21 Billion 10 Year Reopening Closes At 3.735%, Record High Bid To Cover And Direct Bid Ratio, Record Low Primary Dealer Hit Rate

Submitted by Anonymous on Wed, 03/10/2010 - 13:28

  • Yields 3.735% vs. WI of 3.744% as of 1 PM
  • Allotted at high 70.94%
  • Bid To Cover 3.45 is a new record, previous at 2.67, previous reopening at 3.00
  • Indirects 35.1% vs. Avg. 42.01% (Prev. 28.85%), hit ratio on Indirects 51.5%
  • Direct Bidders surge to a record 17.5%, hit ratio on Directs 43%
  • Primary dealer hit ratio at record low 19.9%

Some Market News commentary discussing the expectations on the 10 year reopening in advance of the auction, which may explain the various records in today's auction.

Wednesday's $21.0 billion 10-year note reopening sale is expected to be sponsored by short covering as well as real and
fast money demand, as specific foreign accounts may be at bay due to the issue's reopening status or its timing ahead of the Japanese fiscal year end, sources said. Given the downtick in prices, the auction should, in theory, be supported by short covering. Dealer desks confirmed that a portion of both Tuesday and Wednesday's downtick is linked to this week's auction trio set up.