SOFT TREASURY AUCTIONS ARE HITTING THE STOCK MARKET, MT. GOX RELATED DROP IN BITCOIN
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Poor Treasury Auctions
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market has pulled back to the upper band of the support zone.
- RSI on the chart foreshadowed that such a pullback might be coming when it hit the rare instance of reaching 100.
- The stock market is coming under pressure because two Treasury auctions were soft.
- Here are the details of the $70B five year Treasury auction results:
- High yield: 4.553% (When-Issued: 4.540%)
- Bid-to-cover: 2.30
- Indirect bid: 65.0%
- Direct bid: 15.4%
- Here are the details of the $69B two year Treasury auction results:
- High yield: 4.917% (When-Issued: 4.907%)
- Bid-to-cover: 2.41
- Indirect bid: 57.9%
- Direct bid: 25.5%
- There is another Treasury auction of $44B seven year notes.
May 29, 2024