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$128 Billion In Total Treasuries On Deck, $70 Billion In Bonds
You didn't think the $9 trillion budget deficit was going to finance itself did you? Neither did the Department of the Treasury. Which is why it just announced $128 billion in Treasuries on deck, of which $70 billion in 3, 10 and 30 Year Notes, to be auctioned off on September 8, 9 and 10th. With $25 billion in remaining Fed buybacks, September will be a very interesting month indeed: the Treasury portion of QE will likely be exhausted by the end of next week via POMOs: one only hopes China sees this as a positive development.As a point of reference, August saw $272 billion in new issues, while September's runrate is now at $384 billion (and a $4.6 trillion annual runrate).
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China buying $50 billion in IMF bonds. You think why wanna buy our crap too?
We are literally swimming in debt these days. Just how deep is this pool anyway?
The pool is as deep as you want to swim down. The trick is, of course, judging whether or not you can take the compression depth :)
And then there's always getting back to the top before you run out of air.
It appears a 69bn coupon package was expected.
http://www.treas.gov/offices/domestic-finance/debt-management/quarterly-...
Mr. Bond has to cough up 55bn fresh cash. But no worries, the previous coupon package was around 90 raw bananas, so this should be a milk run...
Charles would be proud...
When is it going to stop ... Is there anyone who thinks this is sustainable for much longer.
I don't know, let me look at the price of gold...
Uh, not much longer...
1,2,3,4...gimme some duration, yes i want some more!!!
and denominate it in yen and yuan...that'll make eveyone happy!
I have an idea. Let's lend the primary dealers some more money at 0% interest so they can buy treasuries and earn 3 or 4%. Then they will make a tidy profit with which they can buy more treasuries!
Did you notice that China is also requesting physical delivery of gold to Hong Kong. There's the gold run up answer! London had to race out into the open market and start collecting the gold it was supposed to have. China basically just declared war on the western financial system with gold request and IMF fund purchases. OUCH!
They are FED up(pardon the pun)
+1
Although I can't stand most goldbugs based on their intense focus on nothing else but gold, this gives me a good giggle....
Those blind squirrels might be onto something.
Heeheee.
Not so, stockbugs behave the similar way.
Exactly. They are the stopped watch that's right twice a day. But today, they're definitely on to something.
The goldbugs have been talking for years about a potential event in which the bullion banks would have to go to the open market and actually 'produce' the gold they're supposed to have.
Well... whaddaya know? Today actually *is* that day. China just shat all over Barclay's and the other gold dealers.
Where ya gettin this info from? Got any links other than a gold site? I wanna read about China requesting deliveries on gold, havent heard about this...
It was already on TV news 2 days ago.
You really think they just focus on nothing else but gold? 24
OT, but well worth the laugh.
http://www.youtube.com/watch?v=eVB-SSkkLnY
BACKWARDATION!
We don't get returns on our money anyway.
<remaining content removed by Sacrilege>
no matter what the Fed jerkoffs have said, I'm confident they will buy it all
these markets are a total farce
Farce? Did somebody say "farce"? I could swear somebody said "farce".
America is all about quanity over quality...
Did you include the corporate debt that's trying to find new financing? I see these ticker announcements about unsold bonds all the time now.
Putin is out on the road now showing the US how it's done.
TALF is for Sissies.
"Prime Minister Putin became somewhat of a marketing rep for steelmaker Mechel's (NYSE: MTL - News) debt, instructing banks and government ministries to look into the purchase of bonds."
http://finance.yahoo.com/news/Russian-Equities-Could-Soar-indie-755035319.html?x=0&.v=1
Think he's convincing?
when do we get a "come to jesus" moment ?
may the farce be with you
test
Gold just pushed through $990.00
It'll only take a couple more corals to get it down. It usually goes 22 spread 14 spread 7 spread then gets captured on break out. But it seems to take a hella long time today.
I have a feeling it will print 1003 then tank back down to 997 at close.
i hope so
In one of the other posts there was a reference that China had told Heli Ben that they would stop buying in November. Is this true? I can't find a link for it.
I'm gonna go out on a limb and say that $32 Billion of this will never be paid back in full if at all.
It will not hold up in the courts. The first prosecution that the Sec files after they are permited
This is getting tiring; perhaps we could get some better data analysis [a high school sophomore should do].
First, the there is $102 billion in Treasuries which mature next week. This means the NET issuance is only $26 billion.
Second, Treasury auctioned only $89 billion this week. Since there was $117 billion in maturing issues, this week saw an actual NEGATIVE NET issuance of $28 billion.
Using your logic, explain how the Fed will cover the current month's deficit of $100-150 billion.
And you cannot use this argument:
Assuming all $117 billion maturing treasuries are purchased, the Treasury will create $117 billion more cash out of thin air.
Logic suggests that the Treasury will cover September deficit the same way they have covered every prior month's deficit; by selling more Treasuries than they buy. E.g.:
As they did in August:
Week of 8/03: Auction 166 - Maturing 131 = Net 35
Week of 8/10: Auction 227 - Maturing 207 = Net 20
Week of 8/17: Auction 125 - Maturing 124 = Net 1
Week of 8/24: Auction 233 - Maturing 117 = Net 116
August Net New Issuance = $ 172 billion.
We know FRBNY bought 42 via POMOs. We do not have reliable figures for who precisely purchased remaining 130, but reasonable estimate is net foreign purchases (gov't and private) accounted for 90. That leaves $40 billion for net domestic purchases.
The calendar for September is:
Week of 8/31: Auction 88 - Maturing 117 = Net -29
Week of 9/08: Auction 128 - Maturing 102 = Net 26
Week of 9/14: Auction ??? - Maturing 129
Week of 9/21: Auction ??? - Maturing 149
September is end-of-quarter, as well as end-of-fiscal-year. EOQ months nearly always result in lower deficit/greater surplus than non-EOQ months (excepting April) due to operational issues.
Even projecting $100 billion in NET NEW issuance, that would require $97 billion total in weeks of 9/14 and 9/21. Given that week of 9/14 would typically be only short-term issues, it is unlikely to exceed $10 billion in NEW issuance. That leaves $85-90 billion for week of 9/21. Which is 20% less than last week of August.
If Fed POMO takes $25 and net domestic again takes $40 (sell equities/purchase Treasuries anyone ?), that leaves only $25 billion for net foreign purchase.
Is that you Liesman?
LOL
Thankfully, no.
SPY > $100, Gold < $1000. That has been decreed.
Every time I hear a helicopter I run out of my office
with my wheelbarrow. Ben! over here
hahahahahahahahahaha
"Probably the most interesting of the recent reports of what is happening with Chinese sovereign wealth fund investment outside China has come from Paul Mylchreest's Thunder Road Report where an ex-U.S. intelligence service member is quoted. He reports that he has a friend who is in the Chinese Sovereign Wealth fund sector who says - hearsay I know and it wouldn't stand up in court - indicated that the wealth fund analysts were working all hours of the day and night trying to put investment deals together - particularly in the oil and precious metals sectors. The conclusion is that China recognises that the U.S. dollar is going to tank and it wants to convert as much of its trillions of dollars of holdings into strategic assets as possible before the collapse really takes hold."
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=88400&sn=Detail
Wheeee...
Come again - who is it that can tank the buck that "is going to tank"?
Silver has also been rallying significantly of late - even more so than gold.
Big sell off Monday 7th setting up for a "flight to safety" on 8th onwards then back to normal once the T's are sold.
^ U.S. markets closed Monday 7th for Labor Day.