Weak 10 Year Auction Saved By Primary Dealers Taking Down Most Since May 2009

"Today's $21 billion 10 Year reopening was not pretty. First, the tail was a notable 3 bps with the When Issued trading at 2.24%, ahead of the auction pricing a disappointing 2.27%, well above the record low 2.00% from September, although still materially lower than average yields in the past year. As troubling was the Bid To Cover which came at 2.86 or the lowest since November 2010's 2.80 (compared to the LTM 3.10). Then looking at the internals should be a cause of concern for anyone who believes that China will not retaliate for the currency bill passed yesterday by Congress, after Indirects took down just 35.0% of the full $21 billion, the lowest since February 2010, at a 81% hit rate...."

at http://www.zerohedge.com/news/weak-10-year-auction-saved-primary-dealers-taking-down-most-may-2009