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$16 Billion 30 Year Auction Prices At 3.82%, 2.73 Bid To Cover, Primary Dealer Take Down Surges
Today's auction of $16 billion in 30 Year Bonds came more or less as expected, printing at a near record low 3.82%, highest only compared to the 3.5-3.6% yields achieved in February and March of 2009. The Bid To Cover was 2.73, a decline from recent prints, yet the biggest surprise was the surge in the Primary Dealer takedown, which at 55.6% was the highest since October 2009. In essence the Primary Dealers carried nearly 60% of the auction (and we all know that the PDs are nothing but the Fed lite). The other surprise - direct bidders represented just 8.3% of the take down: this was the lowest since February, even as Indirects were responsible for just 36.1% of the auction. This once again confirms that starving for yield foreigners like the curve, but not so much to bet on inflation staying low in 30 Years.
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What a liar!
Round and round she goes, where she stops nobody knows.
This is like a global game of "Wheel of Fortune" only all the choices suck (with some worse than others) and all the choices rated negative -6 on a scale of 1 to 10.
You (and me both) lose. But the CNBC letter turners are for the most part easy on the eyes. Just keep the sound on mute and watch the flesh parade.
If I heard correctly, Santelli rated this auction at a C-.
How's that for a shocker.
That is not a great auction result. I guess the foreigners would rather purchase corporate bonds also. Let's all play "track the Treasuries" now for the next 4 weeks to see how much of these auctions this week are POMO'd directly into the Fed's possession.
"Printing at a near record" couldn't have said it better myself. Sounds much better than spreadsheet entry #234245 on the fed monetization policy.xls...
Everyone who purchased part of this auction gets a free t-shirt!
I'm with stupid (Hansel) above. :>)
:) Thanks. free t-shirt*
*subject to 1 tr oz gold processing and delivery fee :D
Pretty substantial reversal in bonds. TLT has a short-term double top at 109/108. Now $103. 5-6% move.
ZIRP is a trap. Interest rates cannot go up and the US pay the interest on the debt. What's the tipping point?
It is unimaginable to me that anyone "real" is buying this junk .
You mean just because the banks are buying the junk with fiat created out of thin air.
It sure seems as if there are better ways.
QE 2. And we ain't talking about no stinkin' ocean liner.
I refer, of course, to the Primary Dealer %.
Thank u, i found this for a long time.
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