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24.09.26 - 21:42
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Bessent Plays Hardball With "Bloomberg Bros": Yields Spike As Treasury Accepts Just 68% Of Maximum Buyback Offers (ZeroHedge)
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Bessent Plays Hardball With "Bloomberg Bros": Yields Spike As Treasury Accepts Just 68% Of Maximum Buyback Offers
Two weeks ago, treasury yields spiked to a 3 year high (still well below 5%), after the first expanded Treasury buyuback operation which had a maximum capacity of $6 billion, resulted in just $5.187 billion in actual buyback offers accepted by the Treasury.
That was a problem because as BofA's rates guru, Mark Cabana, wrote just ahead of the first buyback (his note is available to pro subs), over the last several operations the 10y-20y buybacks had received $18.7 billion of offers on average, or about 9 times oversubscribed (at the old maximum par amount permissable of $2 billion), and Treasury has always bought the maximum.
“A purchase below the max would be unprecedented for the 10y-20y bucket," he wrote.
In the end, the repurchase was some 14% below the max, and that spooked markets because it indicated that dealers were hoping Scott "the house"...
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25.08.26 - 14:31
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Treasury Can Send Strong Signal to Market, Swiber Says (Bloomberg)
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Meghan Swiber, managing director of US rates strategy at BofA Securities, says the US Treasury can cut issuance at the back end of the yield curve, which she says would send a more impactful message to the market. Swiber also talks about what Fed Chair Kevin Warsh may say at Jackson Hole later this week. She speaks on "Bloomberg Surveillance." (Source: Bloomberg)...
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20.05.26 - 22:24
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Banks Eye $30 Billion of High-Grade Bonds for Warner Bros. LBO (Bloomberg)
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Bank of America Corp. and Citigroup Inc. are talking to investors about the makeup of the debt package financing Paramount Skydance Corp.'s acquisition of Warner Bros. Discovery Inc., with early conversations including about $30 billion of high-grade bonds, around $12 billion of junk bonds, and $7.5 billion of loans....
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