5-Year Treasury Auction Goes Off At Second-Lowest Yield
Treasury prices are firm and yields are lower, not just because of protests in Spain and Greece over the coming austerity measures. Today’s 5-year Treasury Note auction was given an “A” grade from CNBC’s Rick Santelli for this auction as investors…
The presiding yield was a low 0.647%, which was apparently the second-lowest yielding auction for the 5-year Treasury. Another show of force was that the bid-to-cover ratio came in at 3.06 and that was the highest demand ratio in nearly six months for the recent five-year auctions. We showed a 2.81 average ratio. Indirect bids were 42% and direct bids were about 10.7%.
Shortly after the auction results the prior 5-year on-the-run Treasury Note showed a yield of 0.63%. That same Note showed a yield of as high as 0.68% yesterday and the yield was as high as 0.70% as recently as September 21. That 5-year rate was 0.74% on September 13 and 0.82% on August 21.
JON C. OGG
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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.
