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$13 Billion 30 Year Auction Reopening Closes At 4.64%, Direct Bidders At 4.9%
The mysterious "direct bidder" (more on that in a second) is absent in the 30 year. It appears the sweet spot of the new buyer is in the 3-10 year range.
- Yields 4.640% vs. Exp. 4.689%
- Bid To Cover 2.68 vs. Avg. 2.56 (Prev. 2.45)
- Indirects 40.7% vs. Avg. 43.98% (Prev. 40.0%)
- Indirect Bid To Cover of 1.62
- Alloted at high 27.21%
- Direct Bidder take down only 4.9%
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Ahhhh yes, that mysterious bidder.
Any port in a storm eh?
Technicals can't break down, but yet let's spread more conspiracy. Especially ignoring PIMCO's movement into the long bonds.
Ahhhh anything to create a conspiracy... keep pushing for the banking overlords, they love the spread of ignorance.
"The Money Masters"
http://video.google.com/videoplay?docid=-515319560256183936#
Watch it, there is a conspiracy, but your heroes aren't really on your side.
Im long the long bond, but... i thought PimPco had moved out?
Short treasuries is very crowded trade - even the idiots on fast-money were discussing it a day or two ago.
I am a bit surprised that the actual vs. expected was so large on this.... without much "direct" bid support........?
Well, you would think PimCo had moved out unless you read their monthly releases yourself, they were still purchasing treasuries, although now they are also purchasing german bunds (which is a brilliant damn idea, if you're an investor who can do so, I would)
If this was short covering the bid to cover ratio would have been a bit higher, but considering that they've kept the long bond stuck in a range for awhile, it was due for a break out, we'll see though, I don't think the bankers will give this up without a fight and I think the market will continue to try and convince the individual investor to sell the long bond so it breaks to higher yields - IF it does, we get hyper inflation, if it doesn't this country will manage to survive this crisis (in my opinion).
Seriously, watch the money masters.... you watch all 3.5 hours and when you come to the end you will shit yourself at the true conspiracy behind why ownership of treasury bonds is being ridiculed. What's even more insidious is the suggestion of what opinions might emerge.
But from the network that is a banking controlled conspiracy theory itself, we now have open talk of "covert" QE. Pot meets Kettle and then fucks it in the ass.
Or consider the updated version on DVD:
http://www.secretofoz.com/
Youtube Trailer and purchase available on this page.
Hey, thanks!
@phaesed
Who are you talking about?
Are you talking about the wealth transfer?
1. CNBC talking about conspiracies and banking interests when it's obviously a bought and paid for corporate and banker megaphone (among OTHER media outlets)
2. I'm talking about how a new currency would be injected into the economy, through Treasury ownership and conversion.
@phaesed
Have you ever looked at Bill Still's message board?
Never. I was a die hard ZH fan but I always did my own research. I've read through a large portion of the major economic works pre-1932, after watching the Money Master's videos I'm about to start tearing through Friedman's Optimal Quantity of money theory again, 0% interest bills instead of bond issuances are the only way to save America at this point.
PIMPco got out of the long, is selling... and interesting how BEFORE they started doing this weeks earlier they hired ex-Fed unabomber-like living/disappearing fall guy Kashkari. In other words, hire an ex-Fed insider and then soon afterwards begin to BAIL OUT of Gov debt.
Hmmm....
BANK RUN BITCHES!!!
USG may be stupid, but they idea that the are not sufficiently camouflaging any purported incremental qe is ridiculous
everybody makes mistakes including the USG. remeber watergate, that's the first one that comes to mind? not thinking that they can rig markets is ridiculous.
Of course the Government can (and does) rig the market, but thinking that Banks can't pay exorbitant amounts of money to influence your opinion on what is safe and what isn't is just as ridiculous.
Fed is the only one buying and everybody knows it, without them yield goes up to 15%
*shrug* I'm buying and I fucking hate the Fed.
Im buying too. Yield doesnt go to 15% without money moving out of risk entirely first (under the premise that we are no where near any sort of "growthiness"). Long treasuries is one of the most despised trades out there.
In fact, I may start my own "Cash-4-TBonds" thing, and offer WAY below market rates for peoples unwanted and unused treasury holdings!
The only people buying the 30y are agents of teh fed. It is in essence throwing your money down the sewer.
*sigh* Foolish assumption, the QE would be for all the high coupon securities maturing in the next 10 years.
So the FED/Treasury sold those ES positions yesterday....Now we know what they did with the money.
I can't wait until the FedRes is opened up to the light of day!
That was a serious WTF moment. It's true the short long bond was a crowded trade (everybody was buying steepeners last week) but the internals of the auction simply make no sense whatsoever, unless Uncle Sam came in with the money truck (helicopter)... or a big prop desk decided to short squeeze everybody.
With oil in the 80 range and gold over 1100 it escapes me how the bond hawks have not yet punished the Treasury for its lack of discipline. Oil at 80, Gold at 1100 and a 30 year at 4.6 means only one thing -- USD going down the drain.
So... horrible economic news, David Rosenberg pointing out the craziness of all what is going on... and the stock market going up. Just another day in Alice's world.
Everyone seems to think that buying the 30 yr means you are holding to maturity.
This is so not the case.
bingo-bango-bongo. exactly right.
+111110
someone gets stuck with those old maid cards.
I like to think the game is chess. It's hard to live and die by Old Maid.
Okay, someone is getting rooked. :P
Ah yes the "Moneymasters". See Vlad Lenin complain that although he is the supreme leader the Soviet economy won't do what he wants it to do. Most be those evil foreign bankers. How dare they charge higher interest rates to communist countries. I suppose when the Chinese turn their noses up at our T-bonds (even though Obama has total control!) it will be because hook-nosed Jew bankers are pulling their strings. Bankers aren't as sharp as you think they are. They mostly care about bragging rights on the golf course: "hey we just bought the #1 US subprime lender!" and probably think CABAL is a some British sport involving white seaters.
Interest is the cause of the business cycle, don't get it twisted Anonymous
(ps we all know who I think is Anonymous as well)
Ah yes the "Moneymasters". See Vlad Lenin complain that although he is the supreme leader the Soviet economy won't do what he wants it to do. Most be those evil foreign bankers. How dare they charge higher interest rates to communist countries. I suppose when the Chinese turn their noses up at our T-bonds (even though Obama has total control!) it will be because hook-nosed Jew bankers are pulling their strings. Bankers aren't as sharp as you think they are. They mostly care about bragging rights on the golf course: "hey we just bought the #1 US subprime lender!" and probably think CABAL is a some British sport involving white seaters.
Anybody buying the 30 year bond is a COMPLETE IDIOT. As Mises said, a guaranteed certificate of CONFISCATION is all it is.
Now that you've weighed in with this brilliance, I'm more convinced than ever.
Better late than never.
Yep, idiot, yep.... oh I wonder who can do complex bond analytics and who can barely add, you must surely be an MBA graduate.
I dunno...they're proving quite
skillfull at manipulation. I'm
beginning to think Bennie can move
short rates up 2% or so and
yet leave long rates unfazed.
Hi Tyler
Love to read your articles but whenever i get to auction results i am lost. The results are confusing to me. Would you have a source where I could learn to interpret the results.
Many thanks for your help and keep on the good show.
Daniel