-071112.jpg "Click to enlarge")
07/11/2012 30-yr Bond Auction (0701 HI time / 1301 EDT)
Previous: 2.72/2.4
Actual: 2.58/2.7
SPIKE WITH 2ND PEAK
Started @ 152’06 (0701)
1st Peak @ 152’12 – 0703 (2 min)
6 ticks
Reversal to 152’05 – 0709 (8 min)
7 ticks
2nd Peak @ 152’16 – 0730 (29 min)
10 ticks
Reversal to 152’10 – 0750 (49 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 of 2.58 is the lowest in years, indicating high demand for the bonds with the dollar and equities unattractive. This caused a relatively tame reaction for the bonds, as the yield rose by only 6 ticks peaking at the start of the :03 bar. With JOBB you would fill long at 152’09, just above the 200/100 SMAs, then have seen arresting upward movement as it stalled 2 ticks above the fill. With the HOD 1 tick higher, the next bar rose to touch it, then fell. Close out with 1-3 ticks as it flirts with the HOD. After the 1st peak was achieved, it retreated to the origin, then traded sideways before the :28 – :30 bars climbed to a 2nd peak of only 10 ticks. The reversal was able to retreat to the 50 SMA for 6 ticks before rising again. All in all a relatively dull auction even with the record low yield.