{"id":1545931,"date":"2025-07-08T17:47:36","date_gmt":"2025-07-08T21:47:36","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1545931"},"modified":"2025-07-08T17:47:36","modified_gmt":"2025-07-08T21:47:36","slug":"ugly-tailing-3y-auction-sees-record-directs-as-foreign-demand-slides","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/ugly-tailing-3y-auction-sees-record-directs-as-foreign-demand-slides\/1545931\/","title":{"rendered":"Ugly, Tailing 3Y Auction Sees Record Directs As Foreign Demand Slides"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Ugly, Tailing 3Y Auction Sees Record Directs As Foreign Demand Slides<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>With bond long-ends blowing up across the globe, driven by among other things, justified fears of a looming surge in supply, moments ago the US Treasury sold $58 billion in 3Y notes. And while the auction consisted of relatively low duration paper, one could feel modest cracks in demand all the way near the front-end of the curve.<\/p>\n<p>Here&#8217;s what happened: the auction prices at a high yield of 3.891%, this was about 9bps lower from the 3.972% last month, but it tailed the When Issued 3.887% by 0.4bps, the same tail as June and the 4th tail in the past 5 auctions.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/3y%20Tail%20july%2025.jpg?itok=oQnLNFgH\"><\/a><\/p>\n<p>The bid to cover was also subpar at 2.51, down from 2.52 last month, and the lowest since April as well as below the six-auction average of 2.61.\u00a0<\/p>\n<p>It was the internals that were most notable however, with Indirects awarded 54.1%, the lowest since Dec 2023, and with Dealers getting 16.5%, in line with the 15.1% recent average, Directs were left with a whopping 29.4%, the highest on record as they salvaged today&#8217;s auction which saw foreign bidders fade away.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/3y%20directs.jpg?itok=YQi_zhjI\"><\/a><\/p>\n<p>Overall, this was an ugly, tailing 3Y auction which saw foreign demand slump and only the record surge in Directs managed to avoid what would have been a very ugly outcome to the short-end of the yield curve on a day when the long-end is already blowing up.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/3Y%20July%202025.jpg?itok=Gi__R2io\"><\/a><\/p>\n<p>Not surprisingly, 10Y yields are trading near session highs with the news of the ugly auction not helping one bit.\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Tue, 07\/08\/2025 &#8211; 13:47<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/markets\/ugly-tailing-3y-auction-sees-record-directs-foreign-demand-slides\" target=\"_blank\" class=\"\">https:\/\/www.zerohedge.com\/markets\/ugly-tailing-3y-auction-sees-record-directs-foreign-demand-slides<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ugly, Tailing 3Y Auction Sees Record Directs As Foreign Demand Slides With bond long-ends blowing up across the globe, driven by among other things, justified&#8230;<\/p>\n","protected":false},"author":0,"featured_media":1545932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1545931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6uan","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/07\/3y20Tail20july2025-DPgjqD.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1545931"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1545932"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1545931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1545931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1545931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}