The wealth transfer continues: another $118 Billion in coupon issuance is coming up, the bulk of which will be bought up by Primary Dealers, repoed back to the Fed, and the resulting cash used to ramp stocks to new all time highs, generating short-term profits for the banks and another year of record bonuses as future US generations will experience the kinds of riots caused by debt mismanagement as Greece does today. Another $49 billion Bills will see the same fate. Also, with the first auction of 5 year TIPS since 2009, is someone telling us something? The Obama plan: Dow 36,000 by the mid-terms or else. In other news, the most recent unmanageable debt load per the DTS is $12,808,961,000,000. This is money that will not be repaid, and includes Trust Fund balances that are amortizing ever faster as America's entitlement state dream joins that of Greece.
- April 26 $24 Billion 13 Week Bills
- April 26 $25 Billion 26 Week Bills
- April 27 $44 Billion 2 Year Bonds
- April 29 $42 Billion 5 Year Bonds
- April 29 $32 Billion 7 Year Bonds
- April 26 $11 Billion 5 Year TIPS
As a reminder, this is what the US curve looks like. Guess what happens when Oil hits $1,000/bbl and Bernanke, seeing the pitchforks outside the Eccles building, finally raises rates.