10-Yr Auction & a couple randoms

There's certainly a lot of news to talk about today, but I just wanted to post the results of today's important bond auction.

Estimates: Yield - 3.94% Bid-to-cover - 2.36 Indirect bidderss - 26%
Actual: Yield (high yield) - 3.99% Bid-to-cover 2.62 Indirect bidders - 34.2%

While the bid-to-cover and indirect bidders were stronger than expected, we saw a 5 basis point TAIL on the 10-yr notes, which is not a good sign.

With all the controversey surrounding the Fed, (which I'll talk about later) will Bernanke fire up the printing presses?

Yields on the 30-yr, which has is an auction for $11 billion tomorrow, are up over 3% today.

The market gapped up today, with futures touching the almighty 951 resistance level. After the opening bell we quickly saw the market recede. It's going to take more than strong futures and wobbily optimism to push the market through major resistance.

The market didn't like what it saw from the auction, as it is down almost 1.5%, with about two hours left in the trading day. Oil busted through resistance at the $70 level, in the face of the dollar index up 0.75%. REIT's are taking one on the chin today down 3.75%, with it's ETF counterpart, SRS, up over 7.5%.

Look for continued volatility through tomorrow until the 30-yr auction results are released. It's a good idea to stay hedged at this point (complete understatement) with equities being whipped around so much. I'll a blog on the pressure building at the Fed a bit later. Good luck!