- 10yr auction results (jargon primer)
- awarded yield: 2.859% vs 2.868% estimate (1pm 'when-issued')
- Bid-to-cover 2.57 vs 2.53 recent average
- indirect bids 65% vs 62% avg
In the current case, "leaving bonds little-changed" is a net positive. We can see a very slight bump in a friendly direction just after the 1:02pm auction results. Had the auction gone poorly, we may have seen bonds drift into negative territory.
10yr yields are currently down almost 1bp on the day at 2.858. Fannie 4.0 MBS have been trading a narrow range between 1 and 2/32nds higher (0.03-0.06).