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$13 Billion 30 Year Auction Closes At 4.41%, 2.74 Bid To Cover
Today's 30 Year auction came very strong, pretty much as we have been expecting, courtesy of the ongoing flattening in the 10s30s as those who had been short the long-end continue to be squeezed out. The auction priced at a 4.41% high yield, 5 bps inside the when issued, and 9 bps higher than the November auction, a much smaller jump compared to recent shorter-dated auctions, and especially the 3 Year from a very days back which jumped by 50% in its yield. The Bid To Cover of 2.74 was the strongest since August, but the biggest surprise was the Indirect Participation which at 49.5% was the highest since July 2009: almost as if foreign bidders received marching orders to buy the long end today.
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Nice to see that the rest of the world still marches to the beat of the dollar drum.
At least that remains the principal illusion until notified otherwise.
Can you imagine someone saying: Hmmm.. yeah.. give my money to the USG for 30 yrs.. Things should be really good about that time... It's a lock.
Wow...
Think it'll take 30 years for Israel
to hit Iran? No? I didn't think so.
Keep in mind that the "Caribbean Banking Centers" aka, Wall Street Hedge Funds count as "Indirect Bidders" thus why I dismiss this as more Primary Dealer laundering to give us all that feel good story when the auction looks "unusually" strong.
Excellent auction indeed! Especially the indirects. SPX continues higher on the results.
SPX would most likely have continued higher regardless . The intraday reversal higher after an earlier decline is by now a pattern as established as the ringing of the opening bell on the NYSE . Great auction though .
I am the amazing Criswell. I predict the market will go up today and everday.
I bet you dont even understand what any of this means.
He wouldn't, as he is not in any way in the business of finance, but rather he is a psychology student using the "permabears" here as fodder for "research" papers.
Permabears? I'm out of my mind bullish! With Zimbabwe Ben at the helm how can we not go to DoW 36,000?!?!? Hell when this is all over that amount might be to low. With a printing press all numbers are possible.
Well let me write his thesis for him then:
"Permabears are unusual subjects in that they seem to get irritated with those who dissemble. Unlike psychologically healthy people, they are unable to accept those possessing prestigious degrees as the arbiters of truth and error. They need to be isolated from the general population lest their neurosis spread..."
Now consider the state of mind of a man who would study those who make an effort to think critically for the purpose of humuliating them. I thought Ellisworth Toohey was a fictional character
I really don't understand the junk ratings. It sounds like people get emotional and attached to their opinions. Emotions and insevurities have no place in the investing world. Some people will be upset if their world view is shattered by subsequent facts. Gold and conspiracy should not be a religion. While I am a bank bashing gold bug I still want to hear conventional wisdom. It is true what the hanger said about banks. If at some point they start looking good it will be fully priced in. I wonder who the real contains are. Harry or the guys who junk him.
I junked myself do failing to detect bad auto complete and being technologically deficient and posting twice.
I really don't understand the junk ratings. It sounds like people get emotional and attached to their opinions. Emotions and insecurities have no place in the investing world. Some people will be upset if their world view is shattered by subsequent facts. Gold and conspiracy should not be a religion. While I am a bank bashing gold bug I still want to hear conventional wisdom. It is true what the wanger said about banks. If at some point they start looking good it will already be fully priced in and too late to join the party I wonder who the real contrarians are. Harry or the guys who junk him.
Strong interest out of Haiti. Maybe its the rumored iranian Missle deplyment to Venezuela
The money may have come from offshore. But it started its journey at the Fed. QE3 has begun in stealth mode.
Yeah... Makes one wonder..
the UK must have found some cash in their couch cushions to buy up the US toilet paper.
when i saw the initial report i suspected as much.
Dear ECB,
Thank you for saving our bond market today. Don't worry, we will classify your purchases under the usual "Great Brittain" and "Households" categories.
Love ya'!
Benny B.
I am The amazing Criswell from Ed Wood fame speaking from the grave. I predict the market will go up today and everyday. I am Criswell, I know all.
i suppose now the "king" dollar will be allowed to fall under 80.00
what a joke...
Wait until the mad dash to lock in SM profits takes place.. it's only a gain when its sold.
It will look like Blk Friday morning at Target or Best Buy! Money would flow back into Bonds.. it's all they know.
Multi Yr Highs in Stocks relative to Fundamentals , the Greed factor will kick in. It always does.
The bottom line is that a 4.50% 30-year yield looks pretty good, at least for a 2 or 3 year trade.
Sure, the DXY will eventually go to 30 - but not before it gets to 120 first - thanks to the impending 2011-2012 Japanese and Euroland implosions.
Holding long-dated US Treasuries with coupons in the 4.50% area when these nasty, "unexpected" events occur will be sweet indeed.
We'll find out in two weeks that
Bill Gross bought the whole thing
hisself and has "temporarily"
changed his mind about the Ponzi.
Ag consolidating recent gains...
The looting will continue until morale improves!
The real risk to JPMorgan is the speed of which long bond yields rise as they cannot get out of their contracts. This will probably be the spark that ignites inside a coal mine. A yield of say 5% would create a 1.6% loss of over 640 billion dollars (they state, I believe, a notional 90 trillion interest rate swaps so 45 trillion on the long end and 45 trillion on the short end). That would blow up JPMorgan and create havoc and collateral damage equal to a neutron bomb in the financial area of Wall Street.
http://harveyorgan.blogspot.com/2010/12/another-raid-on-silver-and-gold-...
The London source continues:
“It’s all about the bond auctions, the bond fell off a cliff. In the derivatives market you’ve got JP Morgan playing the bond market at the behest of the Fed, going long 30 years versus selling short-term paper. They buy 30 year paper and then immediately hedge themselves by selling the 30, 60 and 90 day paper. It’s how they keep interest rates down, it’s how you do it.
The only reason interest rates are not in double digits in the US is because of this game. These guys are short front month paper. If this (the bond market) actually fell much longer, JP Morgan could be wiped out, I mean they would be liquidated. The Fed cannot allow them to do that. We’re witnessing history here.
Money flowing out of bonds is going into precious metals. So what they are doing is trying to paint the tape and make it look like a double-top in gold, with silver also retreating. Open interest went up into the decline, this is a gift (the decline). Asian buyers are laughing, we’re like a cartoon to them. They cannot believe how orchestrated this is.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/12/9_KW...
Hey guys its junior here. My mommy always told me don't fight the fed. Spx to the moon.
Welfare mommies say a lot of crazy things when they're sipping Iced-Thunderbird...
I do my best thinking with the Thunderbird!