With 35 minutes to go, results of the 10 year note auction will soon be out. 25 billion of the issue is at stake and given the uncertainty in Greece, along with the rest of the PIGS, the auction is expected to be above average. Currently, a little hedge work seems to be the theme as the 10 year note is off 7/32’s (yield 3.66%) while stocks are off only a handful on the Dow and ditto on the Naz. Bernanke’s Fed Exit strategy – pay particular attention to the fact that they continue to anticipate concluding the purchase of MBS and Agency Debt Securities at the end of March. Weather concerns have shut down most of the Mid Atlantic and Eastern seaboard, adding to light volume and a volatile trade. Technically, the chart is hanging around support without much of a rally. Not a good sign as far as we’re concerned. Best to stay defensive into the auction, watching for Breaking News bombs along the way. We’ll give you the 10 year auction color post release.
Bernanke’s Fed Exit strategy – pay particular attention to the fact that they continue to anticipate concluding the purchase of MBS and Agency Debt Securities at the end of March
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