US STOCKS: Equities Extending Lows, Tech-Stock Update
Dec-12 16:44
- Stocks are extending late morning lows with tech-stocks leading the decline as noted earlier, the DJIA following the Nasdaq decline after managing to post a new all-time high earlier (48,886.86).
- Selling accelerated after recent Oracle headlines announced OpenAI data center buildout delay from 2027 to 2028 sees the tech company fall over 6% at the moment.
- Leading the decline since the open, however, are: Sandisk Corp -13.01%, Broadcom -10.76%, Western Digital -7.83%, Seagate Technology -7.35%.
- Currently, the DJIA trades down 303.59 points (-0.62%) at 48387.68, S&P E-Mini Futures down 92.25 points (-1.34%) at 6814, Nasdaq down 461.7 points (-2%) at 23127.72.
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US TSYS/SUPPLY: 10Y Note Auction Preview
Nov-12 16:39
Treasury comes to market at 1300ET today to sell $42B in new 10Y Note (CUSIP: 91282CPJ4) at auction.
- This Refunding sale comes following a quarter of mixed auction results for the 10Y: the August Refunding tailed 1.0bp, with September's sale trading through by1.4bp, followed by another tail in October.
- The 10Y saw the weakest auction of October among nominal coupons, with MNI's relative strength indicator awarding a poor score of -0.91. Aside from the 0.5bp tail (when-issued 4.112% vs high yield 4.117%), the sale saw 2.48x bid to cover with 9.1% primary dealer takedown.
- The 5-auction average is of a 0.2bp trade-through with 2.52x bid-cover, 9.9% primary dealer / 70.0% indirect / 20.1% directs accepted.
- Note there's been a slight concession today in 10s (-5.4bp) following the reopening of cash trade after Tuesday's holiday.
- The current when-issued yield of 4.075% would mark a small decline from the October auction's 4.117% but up from September's 4.033%.
- 10s have traded pretty neutral from a valuation perspective. On the 2s-10s-30s fly, 10s are trading at the middle of the range seen since end-July (-2bp to -18bp), at -10bp. Likewise 2s10s (currently 50bp) have been more or less rangebound over that period, with the steepening seen since mid-2023 having largely stalled out since April.
| High yield | When-issued yield | Trade through (tail) | High - Median Spread | Bid-to-cover | Primary Dealer Percent | Indirect Percent | Direct Percent | Offering Amount | |
| 5 auction avg | 4.238% | 4.240% | 0.2 | 5.2 | 2.52 | 9.86% | 70.03% | 20.11% | 39.6 |
| 8-Oct-25 | 4.117% | 4.112% | -0.5 | 5.7 | 2.48 | 9.09% | 66.80% | 24.10% | 39 |
| 10-Sep-25 | 4.033% | 4.047% | 1.4 | 4.7 | 2.65 | 4.21% | 83.13% | 12.66% | 39 |
| 6-Aug-25 | 4.255% | 4.245% | -1.0 | 6.0 | 2.35 | 16.16% | 64.23% | 19.61% | 42 |
| 9-Jul-25 | 4.362% | 4.365% | 0.3 | 5.2 | 2.61 | 10.87% | 65.42% | 23.70% | 39 |
| 11-Jun-25 | 4.421% | 4.430% | 0.9 | 4.3 | 2.52 | 8.96% | 70.56% | 20.48% | 39 |
FED: US TSY 17W BILL AUCTION: HIGH 3.750%(ALLOT 95.87%)
Nov-12 16:32
- US TSY 17W BILL AUCTION: HIGH 3.750%(ALLOT 95.87%)
- US TSY 17W BILL AUCTION: DEALERS TAKE 29.23% OF COMPETITIVES
- US TSY 17W BILL AUCTION: DIRECTS TAKE 6.51% OF COMPETITIVES
- US TSY 17W BILL AUCTION: INDIRECTS TAKE 64.27% OF COMPETITIVES
- US TSY 17W BILL AUCTION: BID/CVR 3.18
EURIBOR OPTIONS: Broken Put Mid-curve Condor
Nov-12 16:31
0RF6 98.125/98.0625/98.00/97.875 broken put condor. Paper sold for 0.5 in 10.5k
