FAST FIVE: Gruesome, Tailing 2Y Auction Sends Yields To Session High, 10Y At 3.99%

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Gruesome, Tailing 2Y Auction Sends Yields To Session High, 10Y At 3.99% One day after a dismal 2Y auction, moments ago the Treasury held another dismal auction , this time for 5Y paper, which just like yesterday immediately sent yields to session highs.

The auction was also a 2.6bps tail to the 4.202% When Issued, one of the biggest tails on record.

The internals were just a bit better, with Indirects at 59.6%, below last month's 61.18% and also below the six-auction average of 61.9%, if above June's low of 56.5%.

And with Directs awarded 18.7%, or just around the recent average of 19.0%, Dealers were left holding 21.7%, the highest since June.

Overall, this was another catastrophic TSY auction coming at a time when every day we see more blow ups in bonds around the world, and sure enough the 10Y promptly spiked to session highs, rising just above 3.99% if not crossing 4.00% just yet.

Categories: ZH