You gotta watch the bond market. Per Zero Hedge - see the one comment I copied and pasted at the bottom:
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Weak 5 Year Auction Shakes Treasury Complex: Enormous Tail, Indirects Drop, Bid To Cover Weakest Since September
Tyler Durden's picture
Submitted by Tyler Durden on 03/24/2010 13:20 -0400
* $42 billion 5 year prices at 2.605 high yield (29.97 allotted at high)
* Bid To Cover at 2.55 weakest since September 2009, last 2.75, average in last year 2.50
* Indirect take down meager 39.66, lowest since July 2009, last 40.33, average in last year 46.03
* Directs continue to be major presence at 10.76, last at 12.85%
* Enormous tail, as auction prices well above the WI, which had been trading at 2.568%. This is the worst tail since July 2009, which was 5.3 bps
Comment:
by Prof Gulliver
on Wed, 03/24/2010 - 13:27
#274600
Remarkable there's not even a little "rush to safety" considering Portugal, or the stock market is shrugging off this incredibly weak auction. As Oliver Twist would say, "Please sir, may I have some more risk |
