Reply #91: Treasurys down after 10-yr auction gets weak foreign bid

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BADB3A4EB%2D124C%2D4B00%2DAD8C%2DE2A1F2117EE4%7D&dateid=38785%2E5548571991%2D863506455&siteid=mktw&dist=newsfinder

NEW YORK (MarketWatch) - Treasury prices remained moderately lower Thursday afternoon, keeping yields higher, after an auction of $8 billion in new 10-year notes produced a very low 5.5% of indirect bids, the carefully watched category that includes foreign central banks and other institutions. The average indirect bid for the last 10 auctions was 28%, although historically foreign bank have not been big buyers at reissuances, according to Kevin Giddis, managing director of fixed income at Morgan Keegan. The latest sale actually was a reopening of a prior 10-year note sale and covered 9-year and 11-month notes. The auction also produced a high yield of 4.760%, a low yield of 4.747%, and a bid to cover - or bids rendered to bids accepted - ratio of 2.87. The 10-year benchmark last was down 6/32 at 98-1/32 with a yield ($TNX 47.57, +0.23, +0.5% ) of 4.755%.