$13 Billion 30 Year Auction Closes At 4.52%, Big Tail In Ugliest 30 Year Auction This Year

Tyler Durden's picture

Rick Santelli: "I give this one an F"

  • Yields 4.520% vs. Exp. 4.483%
  • Bid To Cover 2.45 vs. Avg. 2.55 (Prev. 2.37)
  • Indirects 40.2% vs. Avg. 45.26% (Prev. 34.17%)
  • Indirect Bid To Cover: 1.34
  • Alloted high 40.62%

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Joanito's picture

rally $indu 11,000 by close

ATG's picture

Like $1200 gold on options expiration?...


RockyR's picture

when does greece blow up?

dot_bust's picture

The ECB's going to discuss Greece's debt on December 17th:


ghostfaceinvestah's picture

If those Chinese aren't going to hold up their end of the bargain and buy our overpriced debt, then I think we need to start slapping on some punitive tarrifs on their imported junk, ASAP.

Whats that smell's picture

I'm getting all my babies rattles with real lead nuggets for Christmas!

Anonymous's picture

What does it matter? We stopped buying their imported junk a year ago? Haven't you been paying attention?

Anonymous's picture

or we can send Tiny Tim to kowtow them or our award winning prezidente to bow to them, or maybe you can offer your service to them to save our US of Z?

john_connor's picture

equities bleeding since the auction close.  bye bye.

nonclaim's picture

Then ramp up ADRs on no volume, no news, nothing other than "marked to algo".



Cognitive Dissonance's picture

Since the Fed and friends had the capability to make this auction appear better accepted than it was, one must ask themselves why they did not.

Don't assume they're losing control because they have not.

Ned Zeppelin's picture


A little fear goes a long way.

Tezcatlipoca's picture

So, the question is, is that the best they could do? And if so, how bad was it really?

Anonymous's picture

you sound like an idiot. let me guess. are you a realtor or banker?

Overpowered By Funk's picture

On the other hand don't assume the can keep it all together indefinately, because they CAN'T. Remember, the same idiots are still in charge, they put their pants on one leg at a time just like you and me. They'll fuck up, of that I'm certain.

VegasBD's picture

At this point, even if they never fucked up again, were still gonna end up with same result.

Point of no return was March 18th.

Cognitive Dissonance's picture

When I use the word "control" I'm not implying that control means "keeping it together." The Fed has the ability to do whatever it wishes to do, for now at least. If that means panic the market out of stocks and into the USD and Treasuries, so be it. It also means they can push to market higher from here if they so choose.

The Fed controls $Trillions and $Trillions of derivatives. The leverage that comes from using those financial weapons of mass destruction is massive. Combine that with the printing press and you have control, in both directions.

Overpowered By Funk's picture

Semantics aside, you seem to believe that the FED, as you say can manipulate bond/equity markets at will. "It also means they can push to market higher from here if they so choose." And maybe for the time being they can to a certain degree. All I'm saying is it can't go on indefinately. Something will change and they'll be caught out like Sept. '08. However, if you truly believe otherwise well then, praise the Lord and pass the ammo.

Cognitive Dissonance's picture

Then we are in agreement because no one thing is bigger than the markets indefinitely.

Clinteastwood's picture

You don't think gold is bigger than the markets indefinitely?

Seriously, if it isn't.......I'll start looking for  an income-producing ponzi scheme.

nonclaim's picture

If that means panic the market out of stocks and into the USD and Treasuries, so be it.

Add: panic out of emerging markets into USD. EM stock markets are ripe for harvest.

Daedal's picture

The Fed has the ability to do whatever it wishes to do, for now at least.

If being a dogged fan of Leonardo DiCaprio has taught me anything, it's that even the captain of the Titanic had control of the ship well after it struck the iceberg and water breached the hull. Most passengers, while startled initially, continued about their business. Those who knew of the grim reality (as a result of their financial status) were able to escape, leaving the less fortunate middle and lower class to drown in the lower decks.

Steer onwards Captain Bernanke!

Reductio ad Absurdum's picture

Those who knew of the grim reality (as a result of their financial status) were able to escape, leaving the less fortunate middle and lower class to drown in the lower decks.

Total nonsense. Some of the wealthiest people in the U.S. died on the Titanic, including John Jacob Astor IV, Ida Straus, and Benjamin Guggenheim.

Jim in MN's picture

Why can't anything be partial nonsense anymore?

A Man without Qualities's picture

But J.P. Morgan (who owned White Star) cancelled his trip entirely.  He said he was ill and unable to travel, but went shooting in Scotland.

Many believe that the Titanic was actually swapped with her sister ship, the Olympic, and the sinking was an insurance job that went wrong.  The theory is, Morgan's people had arranged for the SS California to wait in the mid Atlantic for the ship, which would be abandoned owing to a boiler fire, but the captain of the California had the radio tuned to the wrong frequency and the captain of the "Titanic" (or Olympic) collided with an iceberg by accident and the damage from the earlier collision (against which the Olympic was not insured) caused the ship to sink before help arrived.


Daedal's picture

Total nonsense.

You're right, I'm no fan of DiCaprio.

carbonmutant's picture

They don't have to" keep it together indefinately".

All they have to do is find someone else to blame it on.

Assetman's picture


They could have lost control if they let the USD plunge-- but releasing mythical economic data to the public and sovereign debt crisis in tiny countries overseas has provided USD support.  All of a sudden.

Again, this auction isn't a wholesale disaster... but at the margin, it isn't great either.

If you think about it, it's likely the Treasury is testing the market at the long end they same way the Federal Reserve is testing reverse repos.  If the market participates just enough... they will do these deals in larger volumes.  Right now, with yields having declined, they've found a good time to test the market.

It wouldn't surprise me to see 10-year and 30-year auctions even larger the next time around.  They can always get the Fed to intervene if things get out of hand.

ATG's picture

Steve Forbes noted a month ago

the average maturity of US Treasury debt is

49 weeks.

Some time next year they will roll those over,

with MS among other betting at higher yields.

We see 2.5% on the TNX because not one man

in a million comprehends deflation.

Smart money bought notes ten

to one versus equities, and insiders sold equities

$82 for each $1 bought...


Anonymous's picture

The man comprehends deflation when he sees deflation. Oil & gasoline, NG, electricity? Nope-Inflation. Food (grains, produce, basics)&processed? Nope-inflation. Services (auto repair, legal, beauty care, FedEx&UPS shipping) Nope-inflation.

Inflation at least from pricing standpoint.

With 20% UE and benefits endlessly being extended, 10% of population on food stamp assistance, and the myriad gov't jobs, military, and politicoes drawing pay but producing no real net GNP addition, the Treasury will spend money into existence along with the equity pumps and irrational asset par-value buys. Super monetization coming.

No. The productive economy is shrinking, the FIRE economy is dying, but gov't is assuming and enlarging the gap.

That spells big inflation and currency destruction.

Money will come to be used almost exclusively for food, transportation, utilities as newly impoverished repudiate nearly all hard assets.

No thanks big house, no thanks new car, no thanks RVs, 4X's, vacation home, vacations etc.

Food, movement, heat & lights. All financed by the printer's press.

carbonmutant's picture

Actually Rick gave it an F+ because it only dropped the DOW 20 points.

Oso's picture

ok, this article is old, but it mentions Bernanke's financial holdings :  http://money.cnn.com/2005/10/26/news/newsmakers/fed_bernanke_portfolio/index.htm


If someone can find an update on wtf he is holding now (my bet is US equities), then frankly, this whole thing is the largest insider trading scam the world has seen.  How it is even legal for the guy holding the reins of monetary policy to have ANY financial holdings other than USD is beyond me, but this needs to be figured out ASAP.

theprofromdover's picture

Sorry, can't stop, will fill out later.

About 9 months ago, someone checked what the Bank of England Pension fund was holding and hoarding; surprise, surprise, it fitted the exact opposite scenario to the message they were trying to sell to the UK media.......... 

Anonymous's picture

All FED results are completely manipulated anyway, so why believe anything they report anymore??

Up is down, down is up, and cats and dogs are swinging from the chandeliers--


Anonymous's picture

WTF is China obligated to buy our stinking, cheezy, corrupt debt? Congress wants to raise the debt ceiling. Dosent that tell you that the debt in this country is a bottomless toilet? Why would anyone want to buy our debt? Excuse me for simple, But that's the way I see it.

hack3434's picture

Because Ching Chong at the Chinese Central Bank is a fucking idiot or probably (more likely) just as corrupt as the fed. 

Anonymous's picture

You are right it is simple. China buys US$ and treasuries to keep the exchange rate low so they can sell more junk to Wal-Mart. If they didn't buy US$ then the exchange rate goes up and Wal-Mart will have to buy from Laos or Haiti or some cheaper country.

dot_bust's picture

I totally agree, but someone has to advise the Chinese to simply dump their treasuries and take the financial loss. Otherwise, they'll suffer a slow, agonizing decline that their population won't tolerate.

Anonymous's picture

This is something people in the freer world don't seem to comprehend. The Chinese has tolerated the Great Leap Forward, the Cultural Revolution, the 1989 Tiananmen Square Massacre, and countless misdeeds and oppressions before those for millenniums. This little economic crisis (and the subsequent malaise) is nothing for the gov't to worry about, especially when they can blame it all on the evil greedy imperialists.

Just look at how they treat their land and people: http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/

Any uprising will probably fit nicely into their population control agenda.

nonclaim's picture

The Chinese has tolerated [...]

The others who didn't are dead. So "tolerate" is not the appropriate word...

delacroix's picture

better to tumble down a steep hill, than fall off a cliff.

JacksWastedLife's picture

Because they are already holding 2 trillions worth of these papers. If they stop buying it could become 1 trillion or even less in no time.

lsbumblebee's picture

Gee. It's a good thing the recession's over.

Anonymous's picture

I'm no math whiz, but is that the right Indirect Bid to Cover Ratio? I'm coming up with something south of 1.

Fruffing's picture

Anything new from Van Hoisington and Bob Kessler?   Seems they're the only two long bond bulls left.   

With such a consensus, from Jimmy Rogers to Capt. Kangaroo, that the tail's goin to the moon, be good to hear the other side.

Bam_Man's picture

A. Gary Shilling is a long-time bond bull (and deflationist) who remains in that camp.

Anonymous's picture

Where's Robo, we got us a blowout ticker SNSS

Tommy's picture

No one thinks the curtain will be lifted before all the Christmas shopping is done?

carbonmutant's picture

The week before New Year’s is gonna be REAL interesting.