S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Investing

A Mixed 10-Year Treasury Auction Fails to Alter Outlook

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.

US Treasury building
Thinkstock
Wednesday was unusual in that the FOMC minutes from the March 19-20 meeting were released much earlier than expected. We could not help but wonder how that might impact the $21 billion ten-year Treasury Note auction today. The outcome seems to be mixed, and maybe immaterial if you are just watching stocks. The bid-to-cover ratio of 2.79 was slightly under the average, but the tendered amount was for over $58.6 billion. The auction went off at 1.795% for the 2.00% coupon based upon its price of $101.839.

Indirect bidders (foreign demand) were more active than normal with 37.3% of the auction. Banks and investment funds make up the direct bidders and their 29.1% of the auction was much larger than normal.

We currently show the 10-year Treasury yield at 1.78% and the 30-year Treasury yield looks to be 2.98%. The big issue remains that stocks are in a serious bull market. Bonds might not even matter right now, even if you consider that rates could rise handily ahead. We have the S&P up 1.2% at 1,588 and the DJIA up 0.9% at 14,810 at all time highs.

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. a673b.bigscoots-temp.com.

Continue Reading

Jon C. Ogg |

Are Investors Already Skipping Treasury Auctions?

Jon OggPerhaps the greatest leaked secret of our investing lifetimes is that the Treasury bonds went into a price bubble.…
Jon C. Ogg |

Ten-Year Treasury Auction Confirms 1% Rise in Interest Rates in Two Months

Jon OggThe U.S. Treasury has just conducted a $21 billion 10-year Treasury note auction, which may spook some investors. Interest…
Jon C. Ogg |

Strongest 2-Year Treasury Auction of 2012 Emphasizes Caution Toward Risk

If you wonder what a 200 point drop in the DJIA does to a Treasury auction, let’s just say that…
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 |

Solid $13 Billion 30-Year Treasury Long Bond Auction

ThinkstockToday’s 30-Year Treasury Bond auction, the long bond auction, managed to look better than yesterday’s 10-year Treasury Note auction. Yesterday’s…
Foreign and International Banks Dominate 10-Year Treasury Auction
Jon C. Ogg |

Foreign and International Banks Dominate 10-Year Treasury Auction

Another 10-year Treasury note auction has come and gone, and the auction should not be viewed as a disruptive one.
Jon C. Ogg |

10-Year Treasury Auction Sets Poor Tone for 30-Year Auction

ThinkstockTreasury prices had firmed in recent days, taking the yield of the 10-Year Treasury note further away from breaking back…
Paul Ausick |

Fifth Consecutive Negative Yield TIPS Auction

If one is looking for a deflationary signal about the US economy, a good place to start might be with…
Jon C. Ogg |

U.S. Treasury Borrows Money for Free

Jon OggWhat happened to all the talk about a rapid rise in interest rates? A Treasury bill auction today went…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618