YIELDS
High 2.835 pct
Median 2.750 pct
Low 2.650 pct
PRICE/ACCEPTANCES
Price 99.463748
Accepted at high 87.98 pct
Bid-to-cover ratio 2.76
AMOUNTS TENDERED AND ACCEPTED (dollars)
Total accepted 32,000,045,800
Total public bids tendered 88,265,357,800
Competitive bids accepted 31,976,388,000
Noncompetitive bids accepted 23,657,800
Fed add-ons 960,931,500
Primary Dealer Tendered 57,753,000,000
Primary Dealer Accepted 8,922,950,000
Primary Dealer Hit Rate 15.45%
Primary Award Overall Award 27.88%
Direct Bidder Tendered 4,730,000,000
Direct Bidder Accepted 3,073,000,000
Direct Bidder Hit Rate 64.97%
Direct Bidder Overall Award 9.60%
Indirect Bidder Tendered 25,758,700,000
Indirect Bidder Accepted 19,980,438,000
Indirect Bidder Hit Rate 77.57%
Indirect Bidder Overall Award 62.44%
The initial reaction to the auction results has been positive, 10 yr TSY yields fell and "rate sheet influential" MBS prices are higher.
High yield stopped THROUGH WI. In English, the yield decided on at auction was actually lower than where the 7yr was trading below the auction.
We wouldn't be doing our job if we didn't say that these time frames are historically extremely volatile, but the extent to which yields stopped through is supportive for the rest of the day, week, and month...
And given the limited data situation the rest of the holiday week, we're generally feeling better than worse about MBS 's prospects at the moment. That's not to say that profit taking isn't a reality and that no reasons for retracement will emerge. But for now, smooth sailing until further notice. Expect reprices for the better as MBS push into all time highs...
MBS Market Alerts
