2011 Economic Calendar
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10-Yr Note Auction  
Released On 7/13/2011 1:00:00 PM For 7/13/2011 1:00:00 PM
Auction Results
Total Amount$21 B 
Coupon Rate3.125% 
Yield Awarded2.918% 

Firm and right at expectations are the results of today's $21 billion 10-year auction which technically is a reopening of the May 3.125 percent issue for a 9-year 10-month maturity. Coverage of 3.17 is right at trend with the stop-out rate of 2.918 percent right at the one o'clock bid. Likewise, the non-dealer takedown of 44 percent is right at the average. Tomorrow the Treasury auctions $13 billion of 30-year bonds.

Treasury notes are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury note issue. The level of demand for an auction is measured by coverage which is the ratio of bids tendered to bids accepted. The higher this number, the stronger the demand. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the notes, resell the notes to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. The Treasury announces the amount, date and time of the 10-year note auction monthly. 10-year notes are announced around the first week of the month and then auctioned the following week. Generally, the 10-year notes are issued (settled) on the 15th of the month, unless it falls on a weekend or holiday, and then they are issued on the next business day. (Department of the Treasury)  Why Investors Care

Data Source: Haver Analytics

Data Source: Haver Analytics

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