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1 Month Bill Offered At -0.005%; 3 Month At 0.000%

Tyler Durden's picture


Well, it's not quite the negative Bill prints we saw right after Lehman, but the second someone lifts that offer in the 1 Month, Americans will revert to paying the Treasury for the privilege of it holding 1 Month paper. Of course, the last time the 1M was on the verge of being negative, the S&P was at 666. We are now double that. What happens should stocks plummet by 50%, without the Fed withdrawing the massive amounts of liquidity still sloshing out there: -0.5%? -1.0%?


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Thu, 06/23/2011 - 09:35 | 1394338 Cognitive Dissonance
Cognitive Dissonance's picture

Flash Crash...............Bitches.

The one month at -0.0005% brings new meaning to the term "Pay the man".

Thu, 06/23/2011 - 09:41 | 1394386 kaiserhoff
kaiserhoff's picture

Money for nothin' and chicks for free;)

Thu, 06/23/2011 - 09:53 | 1394419 Josh Randall
Josh Randall's picture

Cue Plunge Protection Team...ready in in 5...4...3...2...

Thu, 06/23/2011 - 10:07 | 1394497 karzai_luver
karzai_luver's picture

nothin' fo money and hoes for rent



Thu, 06/23/2011 - 11:02 | 1394831 wandstrasse
wandstrasse's picture

and chicks for free

for free bitchez?

Thu, 06/23/2011 - 09:54 | 1394422 HelluvaEngineer
HelluvaEngineer's picture

Trash holding up well today.  CMG green, BIDU about to go green.  Obviously great stores of personal wealth.

Thu, 06/23/2011 - 10:14 | 1394579 oogs66
oogs66's picture

i checked google trends....flash crash dropped back to almost that no one is expecting it, maybe we can get it

Thu, 06/23/2011 - 10:40 | 1394736 10kby2k
10kby2k's picture

5 year TIPS has been negative for a year.

Thu, 06/23/2011 - 09:31 | 1394342 Cassandra Syndrome
Cassandra Syndrome's picture

Nobody wants to touch commodities as well. So where else can the funds go?

Thu, 06/23/2011 - 09:42 | 1394377 Ray1968
Ray1968's picture

Funds are getting low. Might as well just buy some beer and consume it. Then recycle the liquid waste back to Mother Earth. 


That's what the government is doing to our future... P*ssing it away.

Thu, 06/23/2011 - 09:53 | 1394442 konputa
konputa's picture



It's about the bier bitchez. I'll have something Belgian.

Thu, 06/23/2011 - 10:03 | 1394476 Kayman
Kayman's picture
“We don't have a precise read on why this slower pace of growth is persisting.”

Fed Chairman Ben Bernanke A primer in economics for Ben: 1. Printing is not savings. 2. You have a demand problem. 3. You have a debt problem, relative to incomes. 4. New debt must be paid from future earnings. Ergo, no future earnings means new debt is a drag on the economy. Ben.... they want you to come to the Dean's office....
Thu, 06/23/2011 - 09:36 | 1394346 Edward Beargman
Edward Beargman's picture

Twist and shout!

Thu, 06/23/2011 - 09:37 | 1394347 Boston
Boston's picture

Any day now, I'll start liquidating my Treasury portfolio (mostly 5 year).

But not yet.  First, Bill Gross has to start buying...... 

Thu, 06/23/2011 - 10:03 | 1394483 drom
drom's picture

You must be dumb enough to think your smarter than Bill Gross

I am sure Groos is still shorting Treasuries and dollar cost averaging the short.  Bill Gross is not a short term trader so allthough he has not done well so far, this is only the very beginning of his trade.  He is most likely dollar cost averaging in then will hold for years, then all the idiots that thought his trade was over and done after 3 months will eat their words.

Thu, 06/23/2011 - 10:07 | 1394521 Boston
Boston's picture

Um, I went LONG 10 year notes in Feb, and my profits are locked in.  Bill Gross went flat/short.    

Who's the dummy, dummy?

Thu, 06/23/2011 - 11:06 | 1394897 Goldust
Goldust's picture


Ester: Who you calling ugly sucker?

Fred: YOU!  I could push your face in some dough and make gorilla cookies.

Thu, 06/23/2011 - 13:44 | 1395592 Bananamerican
Bananamerican's picture

Ester: Fred Sanford, you're a messy fool!!

Fred: uh, an, an' you a cessy pool!!

Thu, 06/23/2011 - 10:11 | 1394555 Voodoo-economist
Voodoo-economist's picture

you shouldnt take bills public words for granted. remember, monetary policy must be surprising to have an effect.

Thu, 06/23/2011 - 13:53 | 1395609 fallout11
fallout11's picture

Right. Bill often says one thing (for public consumption) and then does the opposite, or later reverses course. He even contradicts himself from time to time.  If you like I can dig up some examples. He did not start investing yesterday after all.

Thu, 06/23/2011 - 09:33 | 1394350 kito
kito's picture

yes pay the cat burgler to guard your money

Thu, 06/23/2011 - 10:03 | 1394484 d00daa
d00daa's picture

No, better to be fully invested in equities, right?  Dow 15k bitchez!!!  Fucking moron.

Thu, 06/23/2011 - 10:25 | 1394608 kito
kito's picture

???? Youre long treasuries????

Thu, 06/23/2011 - 09:37 | 1394351 AUD
AUD's picture

The Fed Funds 'target' Rate is not quite at zero yet. There's still some room to move.

Thu, 06/23/2011 - 09:33 | 1394354 VogonPoet
VogonPoet's picture

Why do people buy treasuries of one or three month duration at effectively 0% interest. Why not just keep the dollars and save on the transaction costs. Seriously im curious where the buying comes from and why. Thanks.

Thu, 06/23/2011 - 09:35 | 1394365 Dr. Engali
Dr. Engali's picture

Because they are stupid. And some funds have to be invested per their prospectus.

Thu, 06/23/2011 - 09:39 | 1394366 Quintus
Quintus's picture

No problem with that approach if you only have $100 to invest, but if you are managing $10 billion you can't put it on deposit at a bank and you can't put it under your mattress.

Thu, 06/23/2011 - 09:43 | 1394384 VogonPoet
VogonPoet's picture

Wouldnt I keep the cash in the same place I keep the trrasury notes, where ever those are?

Thu, 06/23/2011 - 09:46 | 1394390 Cognitive Dissonance
Cognitive Dissonance's picture

Explain what you mean by 'cash' if you don't mean currency. Because non currency 'cash' needs a holding vessel such as a savings account or CD, money market fund or a treasury bill. 

Thu, 06/23/2011 - 10:15 | 1394544 Dr. No
Dr. No's picture

or a mattress....

EDIT: of course for a mattress, you need 'cash' currency, i.e. pieces of real paper.

Thu, 06/23/2011 - 13:11 | 1395467 cocoablini
cocoablini's picture

I think you would be safe in the low mid range- where you will not get skunked by falling prices( long) or submerged by negative- I need it now borrowing- short notes.
Hanging on to currency and cash is very,very hard in deflation.
It gets stolen, it gets taxed, it gets diluted, it gets confiscated(reverse repo) and swapped for debt.
Yes, the dollar is essentially trash, but its a transactional vehicle that everyone needs. And when they need it, they need it NOW.

Thu, 06/23/2011 - 09:52 | 1394437 spartan117
spartan117's picture

You can elect to place your funds in a zero percent certificate of indebtness.  Like the name states, you get zero percent in this "account".  You can check it out at treasury direct. 

Thu, 06/23/2011 - 09:54 | 1394451 buzzsaw99
buzzsaw99's picture

cool nic

Thu, 06/23/2011 - 09:39 | 1394368 treemagnet
treemagnet's picture

In a cruel twist of

Thu, 06/23/2011 - 09:36 | 1394370 kalum
kalum's picture

Keep the dollars? Where? In the matress?

Thu, 06/23/2011 - 09:56 | 1394458 spartan117
spartan117's picture

How about Chipotles?  CMG up $0.72.  Good lord.

Thu, 06/23/2011 - 09:40 | 1394372 Boston
Boston's picture

T-Bill buyers?  

Uh, how about today's S&P (and HY and oil and any other risk asset) sellers?

Thu, 06/23/2011 - 09:47 | 1394410 More_sellers_th...
More_sellers_than_buyers's picture

love the name...

Thu, 06/23/2011 - 09:39 | 1394364 snowball777
snowball777's picture

Hey Ben, how much to hold these for a month?

Thu, 06/23/2011 - 09:41 | 1394375 Cognitive Dissonance
Cognitive Dissonance's picture

He already has you by those. The question is, how much to hold this?

Thu, 06/23/2011 - 09:59 | 1394454 Silver Dreamer
Silver Dreamer's picture

We are paying him, and we are not holding it.  It's inside us.

Thu, 06/23/2011 - 10:03 | 1394482 fuu
fuu's picture

Well we are holding it with a sphincter.

Thu, 06/23/2011 - 09:36 | 1394373 hugovanderbubble
hugovanderbubble's picture

Credit Agricole is in Default. World Must know it

Thu, 06/23/2011 - 09:46 | 1394391 PY-129-20
PY-129-20's picture

Dexia, Santander

Thu, 06/23/2011 - 10:29 | 1394666 ZeroPower
ZeroPower's picture

Largest bank in the world by bank deposits. Not so fast there...

Thu, 06/23/2011 - 09:40 | 1394374 GeneMarchbanks
GeneMarchbanks's picture

OT2 is it? QE3?

Thu, 06/23/2011 - 09:42 | 1394381 alien-IQ
alien-IQ's picture

I suspect that it's only a matter of time before saving money is considered an act of terrorism.

Thu, 06/23/2011 - 09:45 | 1394402 Cleanclog
Cleanclog's picture

I wish that were funny.  But when TPTB get scared they do make all kind of "new rules" and saving money, holding gold, and feeding your children instead of theirs could become "illegal and treasonous".

Thu, 06/23/2011 - 10:00 | 1394463 Silver Dreamer
Silver Dreamer's picture

Citizen, you must be in debt.  To not be in debt is economic terrorism...  sure, why not?

Thu, 06/23/2011 - 14:00 | 1395649 fallout11
fallout11's picture

Ignorance is strength!

Thu, 06/23/2011 - 09:50 | 1394406 Caviar Emptor
Caviar Emptor's picture

So we got a helluva Biflationary morning:

Jobless claims? hehe; Europe "flashing red!"; US economic data at stall speed; And now a new oil crisis is born....

Expect the lies to thicken big time because they've got their backs squarely against the wall and the light shining in their eyes. The central planners will start fighting amongst themselves as now we're not in just a banking crisis anymore. That was at least something they have remedies for

Thu, 06/23/2011 - 09:51 | 1394413 kaiserhoff
kaiserhoff's picture

OK, run that rabbit by one more time.  How is it that money market funds make money?  Enquiring minds want to know.

Thu, 06/23/2011 - 10:00 | 1394459 buzzsaw99
buzzsaw99's picture

i can explain how money market fund managers make money if that helps.

Thu, 06/23/2011 - 10:04 | 1394503 Kayman
Kayman's picture

Laughed out Loud.

Thu, 06/23/2011 - 10:26 | 1394635 i-dog
i-dog's picture


Thu, 06/23/2011 - 09:52 | 1394418 FranSix
FranSix's picture

London bridge is falling down.

Negative rates during 1939

Thu, 06/23/2011 - 09:56 | 1394435 rubearish10
rubearish10's picture

This magic moment! Stick-save territory.....

Thu, 06/23/2011 - 10:06 | 1394514 rubearish10
rubearish10's picture

....and there you have it, an irrelevant slight beat in new home sales. How long will this uptick last? Begin counting,,,,,now!

Thu, 06/23/2011 - 10:41 | 1394741 The Fonz
The Fonz's picture

I'd like to count... the amount of money the PPT has left...

Thu, 06/23/2011 - 09:56 | 1394457 Caviar Emptor
Caviar Emptor's picture

Amazing how much bad economic news has been buried completely out of not only MSM but the blogosphere too. We're on the brink people. 

Thu, 06/23/2011 - 09:57 | 1394470 Lone Mad Minute...
Lone Mad Minute Medic's picture

"Why do people buy treasuries of one or three month duration at effectively 0% interest."


It's a dog and pony show. Nobody is buying these treasuries. The TBTF bank's are the bagmen for the Fed. Who print money out of thin air and pay the TBTF banks that small amount of money to flip it back to the Fed. Bingo! Ponzi. And 99.9% of Americans are sitting at home drinking a beer and watching Dancing with the stars. They haven't a clue and could care less, and only bitch about how their world is collapsing around them. Then they go out and elect an idiot like Obama, and many RINOs  because they believe all the lies. They are truely MUSHROOMS!

Thu, 06/23/2011 - 10:09 | 1394512 kaiserhoff
kaiserhoff's picture

Don't dis magic mushrooms.  Everyone needs a cash crop;)

Thu, 06/23/2011 - 11:11 | 1394900 snowball777
snowball777's picture

They've been kept in the dark and fed shit, of course they're "fun guys".

And what have you done to topple the man recently?

Thu, 06/23/2011 - 10:03 | 1394481 RobotTrader
RobotTrader's picture

Bernanke isn't printing fast enough.

Today's outright collapse in the CRB index is proof.

Thu, 06/23/2011 - 10:13 | 1394566 alien-IQ
alien-IQ's picture

you still going long?

I told you, it wasn't a reversal it was a trap.

Thu, 06/23/2011 - 10:00 | 1394485 cocoablini
cocoablini's picture

Bernanke admitted he didn't know what was going on yesterday- to paraphrase. Theres a huge run to treasuries- what he needs to save bond market. But hes going to have to let the stock market fall to drive investors to the dying debt markets. I suggest getting into equities or cashing into an FDIC approved bank like right now. The money market complex is about to choke on it again and break the buck too. Short rates are going to plunge as people look to save their worthless currency. Long rates are going to skyrocket unless Ben does operation twist. Cue up Chubby Checkers music... I repeat. Run and duck for cover. This Fall is going to be a whopper that ends all whoppers unless QE3 comes back

Thu, 06/23/2011 - 10:04 | 1394488 cocoablini
cocoablini's picture

DEFLATION is baaaaaccckkk

Thu, 06/23/2011 - 10:07 | 1394499 stormsailor
stormsailor's picture

bring it on,  short 20 /es from 1289.  made back what i lost on my long 10 /es last week and then some,  think i'll leave it for the now, looks rather tippy could drill a straight down hole ala fall 2007.

wish those idiots would outlaw shorting the banks again.  that was the most funnest for the leastest i ever did have.

Thu, 06/23/2011 - 10:07 | 1394504 ParaZite
ParaZite's picture

I still am of the belief that the Dow is connected to the real amount of US Dollars out there, even the fed's electronic / not in circulation money. My theorem is this, Gold was at 800 dollars an ounce or there about when the dow was at roughly 6000. Now gold is near 1600 an ounce, and the dow is at roughly 12000. Nothing has changed about the gold, it just takes twice as many US dollars to purchase it. In layman's terms, a dollar devaluation by 50%. So, the dow 6000 is the same purchasing power wise, as the dow 12000. The numbers go up, but the purchasing power does not. Now if the dow was at 12000 and a Porsche cost 5,000 and an ounce of gold was 50 dollars, there would be reason to celebrate. Right now, it's all smoke, mirrors and bullshit you can believe in. 

Thu, 06/23/2011 - 10:18 | 1394600 cocoablini
cocoablini's picture

When mister margin calls, the dollar reverts back up for bit and all asset classes collapse unless they are currencies. Since gold is a currency these days, its going to be tough to consider gold going below 1300 an ounce. Its all games like you say- until its payback time.
The DOW, dollars all an accounting scheme.
I'd rther be in Swissies, but dollars will do for this FALL. Or gold

Thu, 06/23/2011 - 17:15 | 1396575 blunderdog
blunderdog's picture

Sure, keep the timeline short enough and you can justify any belief about price correlations.

Thu, 06/23/2011 - 10:13 | 1394548 Confucious 222
Confucious 222's picture

Yet another glorious victory in the Government's War on Savers!

Time to promote Bernankybux to General of the Money for Life.

Thu, 06/23/2011 - 10:21 | 1394594 wombats
wombats's picture

Pay the Treasury??? Why would anyone be willing to do that?  I'd rather stuff my $ in a mattress...or better yet, buy PMs.

Negative interest rates just seem like a sly way for the Treasury to get a back door tax increase.

Thu, 06/23/2011 - 10:24 | 1394626 cocoablini
cocoablini's picture

Exactly- hence cash under the mattress came into being.
Ben cannot print fast enough to reflate imploding economies and asset classes around the globe. Or save Europe. This is a credit based dollar, and the debt level is too high to sustain. Owing more debt in a deflation is a bad idea- even if you can print it. Perhaps people have heard of the minsky moment when the interest on the printed debt goes over the revenues of the country. Or Soviet Union.
Ben Sees the minsky maybe, and needs to drive bond rates lower or else everything goes tits up.
Negative rates just being a symptom of a crashing deflating economy where people will PAY you to hold their money- to save as much principle as possible. Or cash under mattress - but you could be robbed by some other entity besides US government.

Thu, 06/23/2011 - 13:51 | 1395601 Dr. Acula
Dr. Acula's picture

I think the money supply will keep increasing:

Bernanke has only two choices: (a) print and print and print, or (b) resign.


Thu, 06/23/2011 - 10:25 | 1394629 Dr. No
Dr. No's picture

I like to keep a diverse portfolio of shoe boxes.  One with silver, one with gold, one with USD, and even one (but smaller) with some reals.  Which remindes me, I need to check the status of the guest bedroom mattress...

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