MBS LUNCH: Weak Demand for Long Bond. Rates Barely Budge

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The Treasury just announced the results of the  $13 billion, 29 year-11 month bond auction.

Today's auction was a reopening.  "Reopening" means the Treasury is simply adding securities to an already outstanding issuance. This explains why the maturity is only  29 years and 11 months.

HERE ARE THE RESULTS:

YIELDS
High           4.520 pct
Median      4.420 pct
Low            4.310 pct

PRICE/ACCEPTANCES
Price                        97.627644
Accepted at high   40.62 pct
Bid-to-cover ratio   2.45

AMOUNTS TENDERED AND ACCEPTED (dollars)
Total accepted                               3,000,034,500
Total public bids tendered               31,830,399,500

Competitive bids accepted             12,981,895,000
Noncompetitive bids accepted        18,139,500

Fed add-ons                                 69,918,900

Primary Dealer Tendered              22,818,000,000
Primary Dealer Accepted               6,866,426,000
Primary Dealer Hit Rate                30.1% of what they bid on
Primary Dealer Overall Award       52.8% of auction

Direct Bidder Tendered                 1,993,000,000
Direct Bidder Accepted                  902,062,000
Direct Bidder Hit Rate                    45.3% of what they bid on
Direct Bidder Overall Award           6.9% of auction

Indirect Bidder Tendered              7,001,260,000
Indirect Bidder Accepted               5,213,407,000
Indirect Bidder Hit Rate                 74.5% of what they bid on
Indirect Bidder Overall Award       40.0% of auction

BOND DETAILS
Issued date    Dec. 15, 2009
Maturity date  Nov. 15, 2039
CUSIP number   912810QD3

Here's how this auction compares with recent results...

JUST LIKE YESTERDAY, THIS AUCTION WAS NOT MET WITH STRONG DEMAND.....something many were expecting, thus rates have barely budged.

Here is the FN 4.5's post auction price action...off the lows of the day for now.

I will edit the post in a moment with more color as the market progresses.