Brief Discussion on Treasury Auction Jargon and Significance

Posted To: MBS Commentary

Earlier today on MBS Live, after briefly discussing the results of today’s 10yr Auction, a question came up basically asking if I could explain what I was talking about in English. Although I’m not sure if it’s much of an improvement from the original Greek, this was my answer, compiled and formatted for the blog: “When-Issued…” The Primary Means Of Establishing an Auction’s Expected Yield When it comes to talking about auction results, and especially the concept of “expected” vs “actual” results, there are now TWO different yields that come into play. The first set are the normal yields that flash on your screen (and on TV, etc…) and then there’s the “when-issued” market, which is like the market’s bet on where the auction will stop. According to the “The Joint Report on the Government…(read more)

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