Bill Gross, founder and co-chief investment officer, of bond fund giant PIMCO called today's auction of 5-year Treasury notes "a stinker"." And that it was. Bloomberg's report:
A huge five-basis-point tail mars December's $35 billion 5-year note auction. The high yield of 2.149 percent compares with a 2.102 percent when-issued yield at the 1:00 bidding deadline. Non-dealer participation wasn't quite as soft as yesterday's 2-year auction with the group awarded 42 percent vs a 45 percent average. This week's Treasury's auctions are definitely showing the effects of thin holiday conditions. The Treasury auctions $29 billion of 7-year notes tomorrow.
Notice that there is a 7-year note auction tomorrow. Today's market pushed the benchmark 10-year Treasury yield up almost 15 basis points to 3.48%.
Previous post: how to follow Treasury Auctions.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.