On the Way to Boston
Something rather important may have happened on the way to the Democrat
nominating convention in Boston this summer. If you have not already seen or
heard about it, you might want to look at:
http://www.drudgereport.com/mattjk1.htm
Before you dismiss the above, remember that Matt Drudge is very rarely
wrong about stories like this.
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10-Year Treasury Auction
Earlier today, the Treasury auctioned $16.0 billion of ten-year notes.
The issue was sold at a market-clearing yield of 4.060%, and the auction
produced a bid-to-cover ratio of 2.00. The 10-year note sold in the November
refunding went off at a market-clearing yield of 4.360%, with a bid-to-cover ratio of
1.90.
Total competitive and noncompetitive tenders today were $31.981 billion,
excluding an allotment of $1.072 billion to the Federal Reserve System.
Additional details are contained in the tables below.
Today's auction concluded the Treasury's $56.0 billion February refunding
operation. The three new issues are dated 2/15/04 and will settle on 2/17.
_____
TABLE 1.
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RESULTS OF THE FEBRUARY 2004
TREASURY REFUNDING OPERATION*
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Bid/
Auct. Amt. Cover Non-
Date (Bils) Maturity Coupon Yield Price Ratio Comp.#
-----------------------------------------------------
02/10 $24.0 02/15/07 2.250% 2.330% 99.770 2.27 $0.278
02/11 $16.0 02/15/09 3.000% 3.030% 99.862 2.84 $0.217
02/12 $16.0 02/15/14 4.000% 4.060% 99.511 2.00 $0.134
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*All three issues are dated 2/15/04 and settle on
2/17/04. #Amount of issue (in billions) awarded
based on non-competitive tenders submitted.
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TABLE 2.
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FEBRUARY 2004 TREASURY REFUNDING OPERATION
-- AWARDS TO "PRIMARY DEALERS"
---------------------------------------------
Total Comp- Award to
et. Tenders "Primary Award to
Accepted Dealers"* "Primary
Issue -- ($s in Billions) -- Dealers"*
---------------------------------------------
3-Yr. Note $23.772 $12.526 52.7%
5-Yr. Note $15.783 $ 8.927 56.6%
10-yr. Note $15.866 $ 8.630 54.4%
---------------------------------------------
Total $55.421 $30.083 54.3%
=============================================
November 2003 Refunding
---------------------------------------------
3-Yr. Note $23.785 $14.759 62.1%
5-Yr. Note $15.816 $10.836 68.5%
10-yr. Note $16.844 $10.237 60.8%
---------------------------------------------
Total $56.445 $35.832 63.5%
=============================================
August 2003 Refunding
---------------------------------------------
3-Yr. Note $23.722 $19.137 80.7%
5-Yr. Note $17.763 $11.879 66.9%
10-yr. Note $17.760 $12.218 68.8%
---------------------------------------------
Total $59.245 $43.234 73.0%
=============================================
May 2003 Refunding
---------------------------------------------
3-Yr. Note $21.726 $15.709 72.3%
5-Yr. Note $17.784 $11.909 67.0%
10-yr. Note $17.831 $13.565 76.1%
---------------------------------------------
Total $57.341 $41.183 71.8%
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*The Treasury definition of "Primary
Dealers" is "submitters bidding for
their own house accounts."
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