{"id":182028,"date":"2010-01-14T13:37:00","date_gmt":"2010-01-14T18:37:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/mysterious-direct-bidding-strength-is-rallying-treasuries-2010-1"},"modified":"2010-01-14T13:37:00","modified_gmt":"2010-01-14T18:37:00","slug":"mysterious-direct-bidding-strength-leads-traders-to-suspect-a-massive-hidden-treasury-buyer","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/182028","title":{"rendered":"Mysterious Direct Bidding Strength Leads Traders To Suspect A Massive Hidden Treasury Buyer"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b30fbc70000000000508934-400-\/paulson-bernanke-whisper.jpg\" border=\"0\" alt=\"paulson bernanke whisper\" width=\"400\" \/><\/p>\n<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>This week&#8217;s treasury auctions have seen massive buying strength from direct bids, which represent U.S. institutional investors.<\/p>\n<p>Such has been the strength that traders suspect a single massive contrarian buyer could be at work, purposefully trying to conceal itself:<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.ft.com\/cms\/s\/0\/c2588658-00ac-11df-ae8d-00144feabdc0.html\">FT:<\/a> Auctions of US Treasury notes this week have attracted extremely strong buying from domestic institutional investors, fuelling speculation that &#8220;one big bidder&#8221; has decided to defy the conventional wisdom on Wall Street that US government debt is due for a fall.<\/p>\n<p style=\"padding-left: 30px;\">The surprising demand for Treasury notes has come in the form of &#8220;direct bids&#8221;, the term used for US institutional investors who bypass the so-called primary dealers that underwrite government bond sales.<\/p>\n<p style=\"padding-left: 30px;\">Yesterday, direct bids accounted for 17 per cent of the sales of $21bn in 10-year Treasury notes, far higher than the recent average of 7.4 per cent. It was the highest percentage of direct bids in a 10-year Treasury auction since May 2005.<\/p>\n<p style=\"padding-left: 30px;\">On Tuesday, direct bids accounted for a record 23.4 per cent of the bidding for $40bn in three-year notes, up from an average direct bid of 6 per cent.<\/p>\n<p style=\"padding-left: 30px;\">Market participants say the unusually high level of direct bidding suggests that a large investor is looking to accumulate Treasuries without alerting the primary dealers on Wall Street to its intentions.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.ft.com\/cms\/s\/0\/c2588658-00ac-11df-ae8d-00144feabdc0.html\">Read more here &gt;<\/a><\/p>\n<p>Whoever it is, they may have backed off from today&#8217;s auction, given that direct bids were only 5% of the total this time. Nevertheless, the auction appeared to do well regardless since the high yield (at 4.64%) came in lower than where similar treasuries traded ahead of the auction <a href=\"http:\/\/www.treasurydirect.gov\/RI\/OFGateway\">Check out today&#8217;s treasury auction results here &gt;<\/a><\/p>\n<p style=\"padding-left: 30px;\"><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4b4f637c00000000008ddfd0\/chart.png\" border=\"0\" alt=\"Chart\" width=\"550\" \/><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/mysterious-direct-bidding-strength-is-rallying-treasuries-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/long-term-yields-arent-fooled-by-the-fed-2009-12\">Long Term Treasury Yields Scream 2007<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/eric-sprott-the-fed-is-a-ponzi-the-treasury-purchase-data-is-a-lie-2009-12\">Eric Sprott: The Fed Is A Ponzi, The Treasury Purchase Data Is A Lie<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/treasury-in-denial-over-goldman-2009-12\">Treasury In Denial About Goldman&#8217;s Role In AIG Crisis<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/igLiJEAsDGQ\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week&#8217;s treasury auctions have seen massive buying strength from direct bids, which represent U.S. institutional investors. Such has been the strength that traders suspect a single massive contrarian buyer could be at work, purposefully trying to conceal itself: FT: Auctions of US Treasury notes this week have attracted extremely strong buying from domestic institutional [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-182028","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/182028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=182028"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/182028\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=182028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=182028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=182028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}