Treasury Action: supply is heavy this week with nearly $200 B Treasury Action: supply is heavy this week with nearly $200 B on the auction block, including $64 B in coupons. Tomorrow's $30 B 3-year auction kicks off the $64 B mini-refunding. Yields on the when-issueds are slightly lower, correcting from last week's losses. The 3-year is at 0.64%, with the 10s at 2.855% and the 30-year at 3.89%. However, these are still some of the cheapest yields in over two years thanks to prospects for Fed tapering, and that may prove attractive to some accounts, especially foreigners amid widening spreads. On the other hand, fears that rates could continue northward and thinning year-end liquidity could keep some buyers sidelined. This morning the Treasury sells $59 B in 3- and 6-month bills and announces 4-week bill details.
Another Tweet from PIMCO's Gross: Another Tweet from PIMCO's Gross: "Making money from money will be difficult when/if policy rates ever go up." More than one sly wag has commented on this Tweet wondering if this is another performance warning from PIMCO, which has been been facing steady investor withdrawals over the past few months as the Fed taper draws near.
Barclays industrial research team holds an analyst/industry conference call Industrial Analyst Research Team provides a weekly industry update on an Analyst/Industry conference call to be held on December 9 at 11 am.