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$26 Billion 10 Year Prices At 3.34%, Highest Yield Since May
Today's $26 billion 10 year auction has priced and while it was not the complete rout many had expected, it did tail, pricing wide of the WI, at 3.34%, which is 70 bps compared to a month earlier, and the highest yield since the May 3.548% auction. Bid To Cover came at 2.92, on the low side of all 2010 auctions. In terms of participation, Indirect take down dropped from 56.6% last auction to 44.4%, which was low, but has been worse in 2010 (29% in January), as Directs stepped up again and bought 11.4%, with the balance of 44.2% of course purchased by the Primary Dealers. We expect at least a small part of this issue to be monetized by Brian Sack in as little as two weeks. Lastly, those hoping for a respite from blowing out rates better pray that Democrats manage to squeeze the Build America Bond provision in the tax rate extension, or else the bottom will fall out of the muni market, forcing Bernanke to unleash QE3: the broke state version.
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Ben must be confused somewhat now? Does he understand English or can he read the numbers?
As the Empire Crumbles....
Sold TBT...looks like they are going to go ahead and buy the yield...which does not bode well for our old friend the S&P during the back half of the session.
I hope the SPY creation unit machine is at least keeping up with The Bernank money printing machine...you know, so that the theory that the market can always go up can be maintained.
TIPS getting crushed.
Wow.....
The Benbernank is like a compulsive gambler who will "double-up to catch up" until the whole thing blows up.
Soon we'll be on the barter system when Benbernank Benjamins aren't worth shit.
Ron Paul-- Where in the hell are you? Stop this madman!
Looks like yields reversed after auction.
Now that you've been outed as a shill/troll here simply for your own "psychology experiment" on perma-bears, why are you still posting?
Please ZH'ers, know that HW is here to mock you, to toy with you, all for his own little boy emotions.
+1. And a reminder that the best way to deal with a troll is to not feed it.
+1
'And a reminder that the best way to deal with a troll is to not feed it'
That explains Bernanke's weight loss
He's long gone from this thread. Thing is, you can sometimes see that he is sucked in a little in spite of his "objective" interest. The Johnny Bravo troll had moments of geniune frustration with us idiots and our inability to understand his truth.
Harry has so far, resisted being pulled in, by sticking mostly to "drive-by" style arguments, picking some single point of data to shake in our faces, only to disappear while people rip it to shreds.
Wrong. See post below.
I concluded long ago he's just a negative attention addict.
Interesting way of saying, 'Masochist'.
Just wondering what the total Interest Expense will be for FY2011 on the US debt outstanding.
Tyler, I think they need to jump straight to QE5 ;)
Mhmm, interesting. I tought Ben fixed the yield.
When is this " Blow up " Supposed to happen? I gots to know?
Nobody knows it, not even Ben Bernanke. That's the magic of economics. Nothing moves for a very, very long time, everything is quiet, and suddenly, things start to unravel at a very fast pace.
'gotta love Bob Pisani talking about how the banks are benefiting from the steep yield curve which is causing the financial stocks to rise. Oh, but wait, banks also own a shit load of treasuries (and are buying more paper) which are losing value...what point was he trying to make again? BUY banks or SELL banks?
In the face of declarations from an army of CNBC 'guests' today saying that "The END" has come for Gold and Silver I just bought more. Sometimes I guess that you just have to do 'stupid' things...
I wonder if we are not getting another shot at buying bonds right now. This was a missed opportunity last Spring.
Guys Guys! It's all 'part of the plan'! The Bernank wants to push mom and pop out of hiding in bonds and place what's left of their savings into Chinese IPOs. To help China along (our primary creditor) and to keep outsourcing jobs to China and kill any possible wage inflation from Americans. That's supply-side at work! It's been the formula since the 1970s and 80s.
Yay!! Time for me to take my company, Chinese IPO, public.
From Adam Quinones (who knows this shit better than just about anyone):
Plain and Simple: the market clearly tried its hardest to price in a supply concession before the 1pm stop, but buyer demand metrics were not dissappointing. Average auction, no reason to believe the world is exiting their U.S. debt positions in size.
What I think is more interesting: + Move in banks,
I think the goal/result of this may be to force US retail investor -who are not as clever as ZH rcommunity to keep on collecting PM, and done it at better prices- to exit bonds, to equities.Bernank actually said it but had said then that yields will go lower, that is why investors will get out of bonds, well this has the same effect, the retail guys who were happy with Mubis and TLT all year willhave to rethink after this flash crashes and there is no yield on deposit.
Given that USD CDS aren't showing either a problem with credit or with inflation, I think what we are seeing here is a liquidity squeeze caused by the collapse of monetary velocity. Those with money don't see anywhere smart to put it because the surreal correlation of all asset classes means everything is super overvalued.
When the musical velocity stops, someone will find there is a shortage of chairs.
Wait for the margin calls, and then duck and cover.
...and fuck the auction.
Yields are up strongly everywhere...just in time for Christmas
Yesterday's (Tuesday) Auction of $32 billion in 3-year notes was even worse...
Low demand for a mid-day US Treasury Auction of $32 billion in short-term 3-year notes pushed yields up even further.The auction's bid-to-cover ratio, a measure of demand, was 2.91, the lowest level since February.
The U.S. FED sold $21 billion worth of re-opened 10 year notes Wednesday,
after auctioning $32 billion in 3-year notes Tuesday.
An offering of $13 billion in re-opened 30-year bonds is scheduled for Thursday.
Schultz! Close the gates! The War is back on!