$13 Billion Year 30 Year Reopening Prices At 4.238%, 4 bps Tail

Tyler Durden's picture

Today's $13 billion in 30 Year bonds (Cusip QQ4) priced at a disappointing 4.238%, with a nearly 4 basis point tail to the when issued which was trading at 4.19%, which resulted in spooking the bond market briefly and causing some LT curve jitters. The Bid To Cover was 2.63, a bounce from the May 2.43, though below the LTM average of 2.68. The internals were relatively normal: Indirects taking down a below average 38.4%, Directs purchasing 9.3% of the auction, and Dealers left holding the bag, even if only for 2 weeks, with 52.3% of the auction. The Indirect bidder hit rate raised a few red flags coming in at a rather high 77.3%, although besides the surprisingly big tail, the auction once again came in as expected, which is to be expected: after all dealers will flip the bulk of it back to the Fed at the next two 17-30 year POMO.

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Gubbmint Cheese's picture

the graph hurts my eyes.. like those japanese cartoons that cause seizur.....



slewie the pi-rat's picture

i think this graph cld be the flag of the NW0, based on the painting "America Behind Bars"

at any rate, i think it may have killed kenny...

Cognitive Dissonance's picture

Will QE 3 follow an exponential curve?

I assume we all understand that once the heroin addict (Wall Street) is convulsing from the DT's the Fed, CONgress and the POTUS will gain the political cover needed to start the presses again?


SheepDog-One's picture

Mr Market seems to have been mainlined more smack today somehow...if they want DT's they better get busy cutting Mr Market off from his days of euphoria such as this one.

Cognitive Dissonance's picture

"They" are just trying to convince us "they" are trying to wean "them" off the smack. The pain needs to show up in average Jane and Joe's quarterly 401(k) statements for the farce to be effective.

Sorry folks but this elevator is going down with shorts stops at various methadone clinics along the way. Watch those doors please.

SheepDog-One's picture

True, it is all to keep the 401K Bathrobe Brigades calm and sipping their coffee spiked with bourbon while watching the Blowhorn tarts at home and not even considering selling their 401K's


Cognitive Dissonance's picture

In the bizarro world of PONZI fiat there is always an endless supply of greater fools. Right up until there isn't. And that can is presently being kicked once again.

Now where is the lovely Lucy to hold that football for Chuck again. I just know she won't pull it away this time.

Cdad's picture


BlowHorn [CNBC] Irrelevant Coverage Ratio is rising:

Deep dive on Google's new Home Page Sim guitar...apparently a very important development.

Lots of depth at the Digital Stuff conference, including what free trinkets are being given out.

Cisco...always an important mention.

Social media, and whether the Weiner effect has made "sexting" uncool, and how that impacts telco.

Ratio of alcohol produced as compared to that which is consumed...in India...and how this ratio is good for DEO.

Liesman and his thoughts on how the trade surplus data trumps all bad economic data and affirms Bernanke.

Finally actually talking about Chinese Fraudcaps...but months after all the animals are out of the barn [but not really interested in bothering Duncan Niederauer about possibly resigning because he is too busy selling the floor of the NYSE and destroying capital with sheeple shearing computers in the room next to...]

John Corzine's thoughts...lol!

[side note:  Scott Wapner just said, "No one expected a "V" shaped recovery?" In answer to his own question, "Is everyone too negative?"  Actually had to take a shot of tequila after hearing that one considering that for two years, everyone was on board with the "V" shaped recovery].


Things not so much on the BlowHorn Radar:  

...coming constitutional challenge to Greek bailout #12 by Germans, rising oil prices, bad weekly employment data, bad wholesale inventory data, clearly collapsing US economy and how we never left the recession because someone didn't notice it is actually a depression, the rising dollar and the reversal in the Euro....

....I'll have to get back to you, Dog, because I need a little more tequila.



SilverDoctors's picture

Tyler, don't know if you've seen this yet, German ratings agency Feri has downgraded the US from AAA to AA!


SheepDog-One's picture

China Dagong as well....seems no one cares today its all about the algo-bots whipping everything higher based on some simple program. Something like <any news> = <cntrl alt del> = <whip futures higher>

I dunno. Just stopping at gun store for ammo and swing by the coin dealer as well for some junk silver dimes he's set aside for me.

Cdad's picture

Typing in <any news> = <cntrl alt del> = <whip futures higher>

Thanks for the code tip, Dog.  I'm already spending my soon to be realized capital gains at Amazon.  Just bought five cool new skins for my iPhone.

And some people actually seek out financial services companies and pay them for advice on trading.  Go figure.

BORT's picture

I thought that today was last POMO scheduled, other than principal payments

NotApplicable's picture

From what I've read here before, it was the last of the current schedule, which did not go until the end of QE2.

trav7777's picture

so, IOW, without QE, our auctions are fucking dead

SheepDog-One's picture

Bernank the magician feverishly doing magic tricks and theres no audience but his PD assistants and the Blowhorn anchors.

Who this is supposed to keep fooling, I really dont know.

RockyRacoon's picture

Who this is supposed to keep fooling, I really dont know.

Steve Liesman?   Maybe Mr. Sorkin?

Cognitive Dissonance's picture

When you want to believe the lie any plausible (and later the standard will be downgraded to just any) excuse will do.

mynhair's picture

All new bagholders on board?  Ok then.........

Terminus C's picture

How are they issuing new debt if they are at the threshold?  Is the raiding of the retirement fund a technical drawdown of the total debt which then allows them to issue more bonds?

I understood it as them actually taking the money of of these funds ot run the government.  If that is the case where are they 'accounting' this new debt?

The Heart's picture

Commercial Break Please:

The criminal COVER-UP of the Fukushima radiation and failures are coming out.


People must shine the light on the total shortcomings of the EPA/FDA/UN/NILU/NRC to protect and warn the people of the US and other countries about the hazardous radiation that is daily getting worse. It is a harsh day in Arizona, New Mexico, and Colorado today with heavier then usual amounts of radiation coming down on the entire area.

What is also not being mentioned is the UV index in the New Mexico region that is the highest in the nation. It is past the maximum level of 11 and for days has been 12, which causes skin damage after ten minutes.


What is urgently needed is the proper monitoring animations and plume models of the fallout clouds like the ones the NILU were doing before being ordered to stop. At least then people can know which areas and days are heavier than usual and have the foresight knowledge to warn them to stay indoors on those days like today.