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.
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