It may be that the Fed Powell Q&A at the Economic Club had influence on demand for the three year notes.
- Treasury sells $40 billion of three or notes that a high yield
Yield
A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as
A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as
Read this Term of 4.073%
- WI level at the time of the auction 4.033%
- Tail four basis points. That is much higher than the -0.3 basis point
Basis point
A basis point is a unit of measurement used to express the change in
value of a financial instrument, such as a bond or a loan. One basis
point is equal to 0.01%, or one one-hundredth of a percentage point. For
example, if the interest rate on a bond increases from 5% to 5.25%,
that is an increase of 25 basis points. It is often used in the context
of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ‘
A basis point is a unit of measurement used to express the change in
value of a financial instrument, such as a bond or a loan. One basis
point is equal to 0.01%, or one one-hundredth of a percentage point. For
example, if the interest rate on a bond increases from 5% to 5.25%,
that is an increase of 25 basis points. It is often used in the context
of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ‘
Read this Term scene of the last six months.
- Directs (a measure of domestic demand), 21.1% versus 18.2% over the last six months
- Indirects (a measure of international demand) 59.1% versus 60.70% six month average
- Dealers 19.9% versus 21.0% six month average
- Bid to cover 2.33X vs 2.59X six month average
The international demand has been quite healthy of late, but for this auction, the indirect demand was less than the six month average. Ironically domestic demand was above the average which has not been the case for recent auctions.
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