5-Year Auction Results

The term direct bidders suggest US institutional investors that circumvent the primary dealers that traditional underwrite the bulk of government bond sales. Direct bids, as compared to Dealer bids, are impossible to trace. The trends of decreasing dealer and increasing direct participation reflects a significant change in how these auction are being funded since 2009. This change in money flows most likely reflects the growing strain within the sovereign debt markets that certain interests would rather not be recognized.

I will be watching the coming 7-, 10- and 30-year auction results.

Average Percentage of Total Accepted Bids Primary Dealers, Direct and Indirect Bidders since 2009:


Source: treasurydirect.gov