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$109 Billion In Treasury Bonds, $88 Billion In Bills On Deck
Tim Geithner just can't get enough of testing the indirect bidders' desire (the directs', not so much) for soaking up rapidly deflating US Sovereign debt: next up on deck $109 Billion in Treasury Bonds, as well as 88 Billion in Treasury Bills, for a total of $197 Billion!
A recap: in July the Treasury issued $229 Billion in Bonds and Bills, the first two weeks of August saw $75 Billion in Bonds, and is now launching another $109 Billion in Bonds, and $88 Billion in Bills: in two months alone, the USA will have printed just over half a trillion in new sovereign debt.
Here are the newly released details for the upcoming Treasury auctions:
$31 Billion in 13 Week Bills, August 24
$30 Billion in 26 Week Bills, August 24
$27 Billion in 52 Week Bills, August 25
$42 Billion in 2 Year Notes, August 25
$39 Billion in 5 Year Notes, August 26
$28 Billion in 7 Year Notes, August 27
The chart of our national debt's ballooning total is presented below in all its glory (August only):
Look for some serious last minute POMOs to raise the overall market, as it subsequently crashes into the end of August to stimulate a "run for safety."
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Pump, Pump, Pump!
amounts and at absurdly low interest rates, using a chunk of it to subsidize their spending, and then basically financing
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Did these count in the WH's "rosy" deficit projections?
We've already passed the WH projection.
9/30/08 $10,024,724,896,912.49
8/18/09 $11,726,594,754,347.95
http://www.treasurydirect.gov/NP/BPDLogin?application=np
Of course the WH forgets to count the SS and other surpluses that we spend now, b/c they issue IOU's in it's place figuring that's as good as the USD.
I was just now holding a $20 and it literally vanished before my eyes - unbelievable!
I was wiping my ass with one and got poop (or was it ppip) on my fingers when it disappeared!
Hil'frekin'larious
Hil'frekin'larious!
How much of that 197 bil is the FED going to create out of thin air?
Name a dollar that hasn't been.
well fortunately for everyone looks like the market is setup perfectly for a nice 10% correction which would convienently enough send the sheeple screaming into thier government money markets and institutions would be happy to just mop that whole issuance up.
And then we can even claim we had a "healthy" correction. How delightful.
Might be a great time to go short...because if the market is doing well, not that anyone wants to anyway, who the hell is going to buy this shit? Market has to tank to get any kind of interest....doesn' t it?
I was looking for an equities crash in Sept/Oct. but end of August works for me!
oops...mightybill beat me to it.
CNBC headline on Treasury sale, note the 5 yr mistake:
Doesn't anybody proofread their shit anymore?
just tank equities. problem solved
Does anyone have a link to what other countries are issuing? I recall the Italy (and France and England, I think?) had a lot of debt to roll over this year--I lost the story, though.
I'm having trouble wrapping my head around what's going on. If I understand correctly, is the theory something like this:
Companies can't raise debt
Governments can raise debt
So governments are raising the debt at (somehow) in absurdly high amounts and at absurdly low interest rates, using a chunk of it to subsidize their spending, and then basically financing the companies that can't issue debt
Or is this model way off?
Does this mean the gov't is raising more money to continue goosing the markets?
BINGO!!! We have a winner!
Ok, here's how it goes (presuming my read on Tim, Benny & GS is accurate - based on prior observations)...
1) GS/Fed start selling all those Sep S&P futures they've been stockpiling (remember - for the govt, a zero sum game is a win!) to force a 10% correction and stir up a little fear & up the VIX to prime the pump, then
2) dump er... "sell" the new debt to replenish the ammo stockpile, then
3) along with the futures sale proceeds and the new cash in hand, sell dollars, buy more futures and set up cash-for-clunkers programs for everything from more cars to appliances & tv sets.
Presto! 50% Fib upside retracement, 10K on the Dow, and Timothy Leary visions of peace, love, and prosperity for all!
Feel better?
Nope, actually feeling rather nauseous, but that's what I got for drinking the Kool-Aid. But this sounds like the most plausible explanation as to what we can expect from the biggest scammers in this butt ugly ponzi scheme.
Once we hit 50% Fib retracement, even the poor mom & pop investors who got in late in the game will have made a little scratch and should be easily spooked when all the big money people start to take profits due to the S&P PE ratio being richer than that grand old Sunoco 260 action. (Of course, if all the mom & pop investors don't sell, none of them will be able to claim Tim & Benny didn't give them a chance! After all, if you don't take the toy truck when offered, don't b!tch when you're left holding the cardboard cutout, pal.)
Result? Everyone sells everything at once and the mkt tanks to retest the March lows.
The punch line is that GS/MS/JPM, et al will have already shorted the market on the way up with everything they could muster from their balance sheet and will clean up all the way down to the end of the roller coaster.
Now, won't that be fun???
Effectively, they are just doing each other's laundry as someone so eloquently coined the service-based economy.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Nope, GS said resistance was futile, so I drank the Kool-Aid provided by the Treasury, and now I’m beginning to feel a little nauseous.
GEITHNER IS A BONDAGE FREAK.
GS out tanking the dollar late this morning - guess they are looking for a new high in the market, and GOOG $1000 target didn't get it done.
Time to bring in the ringer (Soros).
Google forced to identify anonymous blogger...its a good thing you have your own website Tyler!!
http://www.telegraph.co.uk/technology/google/6060546/Bloggers-beware-Goo...
Now you understand why they did a liquidity pull in China. They are up so much, they figured do it there.....rather than in the US markets. Pump and dump....pump and dump. Just wait til they bottom out there....the US is next. Look for a September DUMP here to bank roll a $300 billion week!!!!
This is getting crazy, where will all this money come from? Either the markets are going to absolutely be raped by withdrawels, or the price of beer is going to double by EoY. =(
more money = click enter
Does anyone know where I find a good primer on the corp,T,muni bond/DXY correlation?
links?
Thanks in advance
Serious bond market observers would separate the bill offerings from the coupon offerings.
They are apples and oranges.
Separately, the $ 109 billion is actually a tad less than expected.
anon #42352 is right coupon and bill are different but still part of the same "fruit basket" as for the comment that 109 (that's billion) is a tad less than expected, well we are in a new world were over half million new claimants is not that bad and where a GOV that borrows like never before its ok as long they borrow a few billion less than antecipated......"serious bond market observers???" you are clearly no one of those serious observers as it seems that you have missed the BIG PICTURE
Ok Timmy boy, nobody is buying your bullshit story anymore that "indirect" somehow represents foreign demand for the Treasury toilet paper. We all know that the only "indirect" buyer is the Fed, and besides a few idiots here and there, it is also the only one buying US stocks. Got it? Good.
China might be diversifying out of US debt and into US equity - they could be purchasing through dark pools to both diversify and increase our consumer confidence so that we will buy their crap.
Snake eats tail. More at 11.
so this is what happens
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Tyler, thanks for the very important information. Upcoming OMO actions and recent CDS information could be permanent useful links on the side if there is any room left - two extremely large variables that shape our financial universe.
the 20 year is now priced below the prior low of the market?
Good God, they are already going to start spending the $282 in savings 'found' by Geitner under the couch cushions last night...
Dollars For Dishwashers is going national.
CNBC/GE is going to spam this story nonstop until every home has a new GECC financed dishwasher (and soon to be expanded to refrigerators, ovens, microwaves, and washer/dryers).