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$12 Billion 30 Year Auction Closes At 4.238% High Yield, 2.92 Bid-To-Cover
- Yields 4.238% vs. Exp. 4.289%
- Bid-To-Cover 2.92 vs. Avg. 2.48 (Prev. 2.36)
- Indirect 46.5% vs. Avg. 48.46% (Prev. 50%)
- Allotted at high 85.35% (BBG)
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That's a lot of suitcases.
I don't get it, but I'm sure I will someday.
Lending money to the US Government for 30 years doesn't seem all that bright...
What in the world has been going on with TLT the last few days?
Sept. 10 (Bloomberg) -- U.S. Treasury Secretary Timothy Geithner said the government is moving to withdraw some of its support for financial markets and cautioned that the recovery will have “more than the usual ups and downs.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=alupu1ynmkpI
taking the training wheels off.
withdrawing liquidity as expected.
Roughly translated:
"We are withdrawing some of our financial support because the dollar is taking a beating... and the Chinese told us to 'cool it' for awhile."
"While we go through this period of taking the wind out of the sails of liquidity, expect the stock market to take a major hit."
"Investors shouldn't be worried, though, becuase we intend to go right back to quantitative easing and stimulative spending after the dollar rallies sufficiently".
"We will continue to cycle between money printing and flight to quality to ensure that the needs of Treasury funding are met. Unfortunately, we cannot fool all of the people in the world all at one time-- but we can fool enough to keep the shell game going".
"And don't worry about the ballooning Federal debt burden. When all is settled, we will jack up taxes so high you will never even realize a deficit existed come 2019".
Kudos,
Timothy Geithner, Phd.
assetman...for what it's worth, i always enjoy your comments and appreciate greatly your insights. thank you.
You are way too kind, Sir deadhead!
Mr. Deadhead, I am of the opinion that a good 'Thank you' never goes a waste. And you are, again, in my opinion, the only member in this forum who regularly thanks his fellow participants for their contributions. So, on behalf of all others, I thank you for your thoughfulness. It is very nice of you!
Geithner is to 2009 what Baker was to 1987.
This only makes sense if the big guys are scared shitless of the equity markets and expect deflation.
I am as well and do.
...and the Dollar did not like it.
yup, every time you have a problem with the stock market, go back to the old whipping boy the USD.
....lots of taxpayer dollars ....lotsa dollars to ensure "success"...
tanned, rested and ready after a nice trip thru the caymans.
is there a link to timmay hearing ? THANKS
I have a question for those with more market knowledge than I.
Explain to me how the S&P 500 can go from 666 to 1038, a 57% increase while the market neutral Hybridge fund moves from 15.94 to 16.01 for a whopping increase of .4%
How is that possible, and what are the odds of such a divergence?
Easy -- HSKAX sells short. Anyone shorting gets whacked.
From Google:
The fund invests in the equity securities that are undervalued and sells short securities that it believes are overvalued. It takes long and short positions selected from a universe of mid- to large-capitalization stocks with characteristics similar to those of the Russell 1000 index. It may also invest in shares of exchange-traded funds.
No clue. But there is one observer that calls this market a technical trader's dream.
http://www.thestreet.com/story/10596666/1/stocks-drift-higher-after-data...
so I have to guess that they are bad technical traders
This is where neither the dollar nor the stock market will like it. This was another buydown by indirect bidders. Is the Fed running debt relief program to benefit the treasury instead of homeowners? What would the rate have been had it not been for indirects?
Any bets if there will be another POMO to cover some of the competitive purchases.
I wonder if the Poles were the indirect bidders to treasury auction after their auction went half empty?
marriage counselors know that the surest way to spot a potential divorce is expressions of Disgust.
Disgust is much more revealing than anger etc.
I believe the rest of the world is currently feeling disgust towards the dollar and american policies in general.
Thant is an excellent point!
correct me if i am wrong, but the yield drop (15 bp on 30, 14 on 10) is one of the steepest in quite some time....wow.
Actually, I would rather see a plot of how much the indirects bought the rate down in each auction, both by dollars and by points.
I thought y'all should know....
I'm actually the indirect purchaser.
Could be a combination of people selling money market/stable value products and stepping out to treasuries....or it could be the banks just playing the yield curve instead of lending.
How can anyone take the government seriously that they are "withdrawing support", when everyone knows that that support will be put right back into place on the pretense of "market Fagility and systemis risk". It aint gonna happen.
by Anonymous
Could be a combination of people selling money market/stable value products and stepping out to treasuries....or it could be the banks just playing the yield curve instead of lending.
All part of the plan discussed on 3/29/09
http://bagnewsnotes.typepad.com/.a/6a00d8341cc90353ef01156e89c3a9970c-pi
Or could this be the USG buying the 30 years on a one week delayed basis as before?
"Go ahead and buy these bad old boys, and if it doesn't work out for ya we'll make you whole next week..."
I mean, if I'm not smart enough to comment in midst of this crowd, things are a shitload worse than I thought. Although, frequently, I DO hold views that have no basis in reality...