11:36 EDT - Investors have reasons to be cautious on the 30-yr sale at
1 pm ET. This makes the auction more captivating than usual to watch.
The sharp jump in the direct bid on Wednesday's 10-yr auction still
elicits lots of talk in the market. Because direct bidders bypassed
primary-dealer banks to buy from the auction, it is hard to identify
who exactly aggressively bid and for what purpose. "A lot of questions
with little answers as of right now," says Jason Rogan, director of US
government bond trading at Guggenheim Partners. "Do they know
something we don't and will be big buyers again? Was it a mistake?"
The 30-year bond is 7/32 higher to yield 2.58%. The auction is set for
a record low yield. (min.zeng@dowjones.com)
(END) Dow Jones Newswires
July 12, 2012 11:36 ET (15:36 GMT)
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