Interest Rate Roundup

Tuesday, February 06, 2007

Get me some 3-years ... stat!

That's what buyers appeared to say this afternoon. Indeed, the auction of $16 billion in 3-year Treasury Notes went over extremely well ...

* The bid-to-cover ratio was 2.97. That was up noticeably from 2.27 a month earlier and the strongest going all the way back to May 1998.

* The notes were sold at a yield of 4.80%, below pre-auction expectations of 4.82%.

* The only minor fly in the ointment: Indirect bidders bought 32.3% of the notes sold, up from 22.3% in August but below the average of 36% for the last 12 auctions.

Treasury prices were already up a few ticks on the day before the auction results were released and they're adding to those gains now. Long bond futures were up 13/32 at last count, while 10-year yields were down almost 3 basis points to 4.77%.


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