Today’s 13 and 26 week auction results are out and the trend of lower indirects/weaker bid to cover at low(er) rates that was noted and discussed by @japhychron last week continues – at least on the short end:
26 Week – Yield 0.11 vs. 0.13 (May 4, previous), Indirect Bidders: 43.66 (27.57 prev – see note), Bid To Cover: 4.45 vs. 4.40 prev, Coupon 0.112 vs. 0.132 prev.
14 Week – Yield 0.05 (unch. vs. May 4), Indirect Bidders: 14.17 vs. 26.28 prev, Bid To Cover: 4.18 vs. 4.34, Coupon: 0.051 (unch)
The 26 week auction saw a noticeable jump in both Indirects and in the BTC despite lower yield and coupons. For the last 10 auctions, the indirects mean has been 34.63 while 1 std. deviation moves have been 9. This jump is particularly interesting today with the noted continued weakness in shorter term bills (13 week).
Updated Issuance Calendar and Stats
The Auction Stats and April’s issuance calendar has been updated on Google Docs and can be found here. It’s a relatively “quiet” market as we await the slew of issuance this week in 3/10/30y (10 and 30s are both re-openings). Tomorrow also brings the 4 week bill auction in which I’ll be watching the results to see if we continue to see weakness in the two categories at these low rates.