The On Again Off Again Made for a T-Bill Mess?
U.S. Treasuries broadened losses on Tuesday after the government saw only average demand for its $40 billion three-year auction.
Bidding at the auction was complicated by conflicting reports on whether euro zone countries agreed to help debt-stricken Greece.
"It looks like the on-again, off-again Greece-aid sideshow made for messy bidding," said Tom Simons of Jefferies & Co in New York. "The results of the three-year note auction were quite sloppy."
Yields on the auction were about 1.5 basis points above expectations, and the bid cover was the weakest since the October 2009 auction.
Simons said the buyside participation was quite strong.
In the when-issued market, the yield on the new three-year Treasuries yield rose to 1.385 percent from 1.363 percent before the auction.
Benchmark 10-year notes, which had been down 12/32 before the auction, were down 20/32 afterwards, yielding 3.64 percent. The 30-year bond fell a point to yield 4.56 percent, up from 4.49 percent on Monday.
I respectfully disagree, the fact that no one wants this crap made for "messy bidding" but I could be wrong. Can't keep it up forever.