Results of the Treasury's $13 billion auction of 5-year notes were good, with the bid-to-cover ratio at 2.50, comfortably above the past year's average of 2.27. In addition, the percentage of awards that went to indirect bidders (end-users) was 49%, well above the 27.4% average of the past year. The auction yield was exactly as expected. These results hint that Treasury prices may have fallen enough for now, as both the amount of bids and the quality of the buyers were favorable.
P.S. Will you be there when Cramer makes his next move?
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Tony Crescenzi is the chief bond market strategist at Miller Tabak + Co., LLC, and advises many of the nation's top institutional investors on issues related to the bond market, the economy and other macro-related issues. At the request of the Federal Reserve, Crescenzi is a regular participant in the board's Livingston Survey of economic forecasters. He is also the author of The Strategic Bond Investor. At the time of publication, Crescenzi or Miller Tabak had no positions in the securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Crescenzi also is the founder of Bondtalk.com, a popular Web site covering the bond market and the economy. Crescenzi appreciates your feedback; click here to send him an email.
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