February 2010 Treasury Auction

Trends in Treasury Notes and Bonds Issuance

Between July 2009 and February 2010,

• 2-year note went from $42 billion per month for $44 billion per month (4.8% increase);
• 3-year note from $35 billion to $40 billion (14.3% increase);
• 5-year note from $39 billion to $42 billion (7.7% increase);
• 7-year note from $28 billion to $32 billion (14.3% increase);
• 10-year note from $19 billion to $25 billion (31.6% increase);
• 30-year bond from 11 billion to $16 billion (45.5% increase).

February 2010 saw the highest sale of Treasury notes and bonds in the 8 months that this blog has followed, despite February being the shortest month of the year.

Treasury Auction Result for 2/25/2010

The U.S. Treasury Department auctioned the following Treasury securities today.

• 7-year note: $32 billion (same as last month)
  
  Primary Dealer: $13.57 billion
  Indirect Bidder: $12.89 billion
  Indirect Bidder Percentage: 40.3% (last month 51%)
  Direct Bidder: $5.51 billion (17.2%; last month $3.78 billion)
  Bid to Cover Ratio: 2.98 (last month 2.85)
  Interest Rate: 3% (last month 3.125%)
  High Yield: 3.078% (allotted at high: 9.60%) (last month high yield 3.128%)

In addition, SOMA* purchased $786 million 7-year note.

Total for the week: $236 billion

• Bills: $110 billion
• Notes and bonds: $126 billion

Total for February 2010: $569 billion

• Bills: $362 billion
• Notes and bonds: $207 billion

Additional purchase by SOMA in February: $19.996 billion

• Bills: $12.49 billion
• Notes and bonds: $7.506 billion

Treasury Auction Result for 2/24/2010

The U.S. Treasury Department auctioned the following Treasury securities today.

• 56-day CMB*: $25 billion (for use by the Federal Reserve under SFP*)
  
  Primary Dealer: $20 billion
  Indirect Bidder: $2.21 billion
  Indirect Bidder Percentage: 8.8%
  Direct Bidder: $2.79 billion
  Bid to Cover Ratio: 3.93
  Investment Rate: 0.101% (cf. 13-week (91 day) bill investment rate: 0.101%)
  High Rate: 0.100% (allotted at high: 55.04%)

• 5-year note: $42 billion (same as last month)
  
  Primary Dealer: $19.58 billion
  Indirect Bidder: $16.87 billion
  Indirect Bidder Percentage: 40.2% (last month 52.8%)
  Direct Bidder: $5.37 billion (last month $3.12 billion)
  Bid to Cover Ratio: 2.75 (last month 2.80)
  Interest Rate: 2.375% (last month 2.250%)
  High Yield: 2.395% (allotted at high: 32.83%) (last month high yield 2.370%)

In addition, SOMA purchased $1.03 billion 5-year note.

Total for the week: $204 billion

• Bills: $110 billion
• Notes and bonds: $94 billion

Total for February 2010 so far: $537 billion

• Bills: $362 billion
• Notes and bonds: $175 billion

Additional purchase by SOMA in February so far: $19.21 billion

• Bills: $12.49 billion
• Notes and bonds: $6.72 billion

Treasury Auction Result for 2/23/2010

The U.S. Treasury Department auctioned the following Treasury securities today.

• 4-week bill: $31 billion (down $1 billion from last week)
  
  Primary Dealer: $21.21 billion
  Indirect Bidder: $5.96 billion
  Indirect Bidder Percentage: 19.2% (last week 27.6%)
  Direct Bidder: $2.91 billion (last week $3.54 billion)
  Bid to Cover Ratio: 3.82 (last week 3.97)
  Investment Rate: 0.056% (last week 0.061%)
  High Rate: 0.055% (allotted at high: 27.75%)

In addition, SOMA* purchased $6.29 billion 4-week note.

• 2-year note: $44 billion (same as last month)
  
  Primary Dealer: $16.65 billion
  Indirect Bidder: $23.33 billion
  Indirect Bidder Percentage: 53% (last month 42.6%)
  Direct Bidder: $3.57 billion (last month $4.69 billion)
  Bid to Cover Ratio: 3.33 (last month 3.13)
  Interest Rate: 0.875% (last month 0.875%)
  High Yield: 0.895% (allotted at high: 66.57%) (last month high yield 0.880%)

In addition, SOMA purchased $1.08 billion 2-year note.

Total for the week: $137 billion

• Bills: $85 billion
• Notes and bonds: $52 billion

Total for February 2010 so far: $470 billion

• Bills: $337 billion
• Notes and bonds: $133 billion

Additional purchase by SOMA in February so far: $18.18 billion

• Bills: $12.49 billion
• Notes and bonds: $5.69 billion

Treasury Auction Result for 2/22/2010

The U.S. Treasury Department auctioned the following Treasury securities today.

• 13-week bill: $26 billion (up $1 billion from last week)
  
  Primary Dealer: $11.38 billion
  Indirect Bidder: $7.87 billion
  Indirect Bidder Percentage: 30.3% (last week 34.8%)
  Direct Bidder: $4.65 billion (last week $2.17 billion)
  Bid to Cover Ratio: 4.04 (last week 4.05)
  Investment Rate: 0.101% (last week 0.101%)
  High Rate: 0.100% (allotted at high: 75.72%)
  
  
• 26-week bill: $28 billion (same as last week)
  
  Primary Dealer: $11.16 billion
  Indirect Bidder: $10.70 billion
  Indirect Bidder Percentage: 38.2% (last week 31.5%)
  Direct Bidder: $4.47 billion (last week $3.34 billion)
  Bid to Cover Ratio: 4.29 (last week 3.84)
  Investment Rate: 0.193% (last week 0.188%)
  High Rate: 0.190% (allotted at high: 42.84%)

• 30-year TIPS: $8 billion (1st issuance of 30-year TIPS since 2001 when Treasury issued 30-1/2 year TIPS; 1999 was the last year Treasury issued 30-year TIPS)
  
  Primary Dealer: $4.05 billion
  Indirect Bidder: $3.36 billion
  Indirect Bidder Percentage: 27.6%
  Direct Bidder: $0.505 billion
  Bid to Cover Ratio: 2.45 (last week 4.44)
  Interest Rate: 2.125% (last week 0.056%)
  High Yield: 2.229% (allotted at high: 66.57%)

Total for the week: $62 billion

• Bills: $54 billion
• Notes and bonds: $8 billion

Total for February 2010 so far: $395 billion

• Bills: $306 billion
• Notes and bonds: $89 billion

Additional purchase by SOMA in February so far: $10.81 billion

• Bills: $6.20 billion
• Notes and bonds: $4.61 billion