3/13/2013 10-yr Bond Auction (1301 EDT)
Previous: 2.05/2.7
Actual: 2.03/3.2
SPIKE WITH 2ND PEAK
Started @ 141’05 (1301)
1st Peak @ 141’14 – 1302 (1 min)
9 ticks
2nd Peak @ 141’20 – 1324 (23 min)
15 ticks
Reversal to 141’14 – 1346 (45 min)
6 ticks
Notes: Report is scheduled on Forex Factory at the top of the hour, but the spike always breaks 1 min late. The highest yield fell marginally from the previous auction but still remained at a high level 2 months after the FED commenced buying bonds. This caused the ZB to spike long for 9 ticks. With JOBB you would fill long at 141’08 with no slippage. It crossed all 3 major SMAs near the origin, then peaked just below the PP Pivot. Look to exit at 141’12 or 13 for 4-5 ticks. After the spike, it retreated a bit, then geared up for a 2nd peak of 6 more ticks at the OOD in about 20 min. The final reversal reclaimed 6 ticks in another 20 min, above the 50 SMA.