S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Banking, finance, and taxes

10-Year Treasury Auction Signals Strong Fear of Global Recession

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Investors are treating U.S. Treasury debt more favorably than gold at the moment.  The U.S. just saw its “AAA” rating from Fitch maintained late on Tuesday and now we are reminded why the research report called the United States the world’s reserve currency again.  The 10-Year Treasury Note auction from today is getting extremely high marks. Unfortunately, the implications are not good for the broader economy.

The prior ‘on-the-run” 10-Year was trading at 1.51% or so today, but the new auction went off at an amazing 1.459%.  The bid-to-cover ratio was extremely high all the way up at 3.61% versus an average of 3.07 for 10-Year Treasuries.  Another key metric was indirect 40.6% and direct bids were over 45%, which is the highest direct bidding we have seen.

Keep in mind that the previous 10-Year Treasury auction went off at about 1.62% with a bid-to-cover ratio of only 3.06 at the time.  This is fear of a global recession driving interest in U.S. Treasury debt.  The good news is that you can qualify for a housing mortgage then you are likely looking at record-low rates on 15-year and 30-year mortgages.

The iShares Barclays 20+ Year Treasury Bond (NYSEMKT: TLT) exchange-traded product is now up 0.23% at $128.74 on the news.  Also the iShares Barclays 7-10 Year Treasury (NYSEMKT: IEF) exchange-traded product is up by $0.07 at $109.09.  Even the PIMCO Total Return ETF (NYSEMKT: BOND) ticked back up and is trading up $0.07 at $106.53.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Jon C. Ogg |

A Poor $16 Billion 30-Year Treasury Long Bond Auction

The U.S. Treasury has not had the best week when it comes to Treasury debt auctions.  The 30-Year $16 billion…

Jon C. Ogg |

Another Strong Treasury Auction for $29 Billion 7-Year Notes

ThinkstockIt was just yesterday that we noted that higher interest rates may cure higher interest rates. We have now seen…

Jon C. Ogg |

Treasuries Brace for 3-Percent 10-Year and 4-Percent 30-Year Yields

It is no secret now that interest rates have risen. Long-term Treasury yields and even intermediate Treasury yields are now…

Jon C. Ogg |

A How-To Guide for Betting Against Treasuries, Bracing for Higher Interest Rates

Is the Treasury market finally living up to its threat as the next big short? The money that was made…

Jon C. Ogg |

Treasury Still Selling Inflation-Protection TIPS at Negative Yields

Imagine not just loaning the government money for free, but at negative nominal rates. Another fresh Treasury auction of 10-year…

Douglas A. McIntyre |

Long-Bond Auction Conundrum

Earlier today came the results from a highly awaited $16 billion 30-Year Treasury bond auction… the famed ‘Long Bond.’  The…

Jon C. Ogg |

30-Year Bond Auction A Mild Success (TBT)

The latest results from a 30-Year Treasury Bond auction did not manage to turn the bond momentum back in favor…

Jon C. Ogg |

30-Year TIPS Auction… 0.77% Yield (TIP, IPE)

The U.S. Treasury has released the auction results for its 30-year TIPs, its bonds which offer inflation-adjustments or at least…

Jon C. Ogg |

ETF Folly: Just When You Thought Bond Yields Would Skyrocket

ThinkstockBond yields have risen over the past month or two, and many investors expected those yields to keep rising. That was before…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820