I rarely comment on a 5 yr Treasury auction but in light of what is going on with bond yields, I’ll give you the stats because they are sending bond yields even higher with the 10 yr now at 5.12% and the 30 yr kissing 5.40%. The 5 yr by the way is at a 19 year high, along with 10s and 30s.
The auction was weak. The yield of 5.033% was a large 3 bps above when issued pricing. The bid to cover of 2.21 was below the previous one year average of 2.34%. Also, I had to go back to May 2024 to see the last time dealers were left with this much of a 5 yr auction at 11%.
Bottom line, a poor auction with Treasury trying to sell paper into a weak market and where yields weren’t attractive enough to bring in the buyers. The bond bear market continues on.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.
