FYI: The U.S. Treasury Department on Thursday awarded primary dealers their smallest ever share of 30-year Treasury Inflation Protected Securities at an auction as investors took the majority of the supply, Treasury data showed.
Primary dealers, or the top 24 Wall Street firms that do business directly with the Federal Reserve, received 10.63% of the $7 billion in 30-year TIPS offered 912810SG4=, resulting in their yield to be sold at 0.501%, which was the lowest yield at an auction of this maturity since October 2012.
“Dealers ended up with very little, but the lack of any follow-through buying suggests that their small takedown was by design,” Tom Simons, senior money market strategist at Jefferies LLC, wrote in a research note.
Regards,
Ted
https://www.reuters.com/article/us-usa-auction-tips/primary-dealers-get-record-low-share-of-u-s-30-year-tips-supply-idUSKCN1VC26A
