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$28 Billion 7 Year Auction Results: 3.092% Yield On 2.74 B/C

Tyler Durden's picture




 

The question now is how much of the "indirect" interest is actually Fed recycled direct interest.

  • Yield 3.092% vs. Exp. 3.124%
  • Bid-to-cover 2.74 vs. Avg. 2.5 (Prev. 2.63)
  • Indirects 61.2% vs. Avg 44.6% (Prev 62%)
  • Indirect bid-to-cover 1.40x
  • Allotted at high 46.29% (BBG)

 

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Thu, 08/27/2009 - 13:15 | 50197 TumblingDice
TumblingDice's picture

I wonder what grade Santelli would give them if they weren't cheating.

Thu, 08/27/2009 - 13:36 | 50231 Miles Kendig
Miles Kendig's picture

What is a Santelli?  Does it dress like it is going on a date?

Thu, 08/27/2009 - 15:58 | 50545 chumbawamba
chumbawamba's picture

A Santelli is a disposable sanitary napkin, wrapped individually and ready for use on the go or in certain situations where an ordianary sanitary napkin would be inconvenient.

I am Chumbawamba.

Thu, 08/27/2009 - 13:19 | 50202 AnonymousMonetarist
AnonymousMonetarist's picture

New Bloggenklatura term,

Fed recycled direct interest...

makes the laundering sound officious.


Thu, 08/27/2009 - 13:32 | 50224 lsbumblebee
lsbumblebee's picture

I'm betting the S&P finishes today +.000000001 to keep the all important winning streak alive.

Thu, 08/27/2009 - 13:37 | 50233 Anonymous
Anonymous's picture

This pattern is happening about 2-3 days a week now...tank at open, hit the low a little after 10am, rise the rest of the day...like clockwork!

Thu, 08/27/2009 - 16:22 | 50354 greenbacks (not verified)
greenbacks's picture

Chosen by the buyers and sellers - i.e. the parties placing the orders (aka the fund managers and their

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

underlings).

Thu, 08/27/2009 - 13:38 | 50234 Anonymous
Anonymous's picture

Anyone for QE II?

Well, you're right to be a bit skeptical about such a notion, I suppose. After all, it's a bit like saying 'We've got a toilet that is just full-up, and the darn thing just won't flush. I know! Let's just install another toilet next to it, and, voila!, the bathroom is now A-OK!' Except we've got one problem--that stink ain't leaving the room.

Thu, 08/27/2009 - 13:44 | 50237 lsbumblebee
lsbumblebee's picture

LOL! I heard Helicopter Ben has ten toilets in his bathroom.

Thu, 08/27/2009 - 13:56 | 50249 Gordon_Gekko
Gordon_Gekko's picture

"The question now is how much of the "indirect" interest is actually Fed recycled direct interest."

99.99999999%? "Indirect", Treasury "auctions", Federal Reserve, US Dollar, US Govt., the Stock "market" - it's all a total f--king joke at this point.

Thu, 08/27/2009 - 14:01 | 50264 VegasBD
VegasBD's picture

Agreed. There is no way to follow these now. We have zero clue who is buying what, those numbers mean absolutely nothing now.

We almost have to assume the Fed is buying ALL of it after that two year acution pretty much failed last time around.

Glad Im out of dollars. And any excess dollars i have here from the jobbie job i buy silver.

Thu, 08/27/2009 - 14:33 | 50349 Gordon_Gekko
Gordon_Gekko's picture

One of the things that gives me great satisfaction even today when I think about it is the fact that I used Bush's stimulus money to buy physical Gold - every cent of it.

Thu, 08/27/2009 - 16:02 | 50552 chumbawamba
chumbawamba's picture

While I hate you and everything that you stand for, I salute your craftiness.  Gold greed = good.

I am Chumbawamba.

Thu, 08/27/2009 - 14:06 | 50282 Hondo
Hondo's picture

The street owns it and will dump it to the Fed asap

Thu, 08/27/2009 - 14:13 | 50295 AmenRa
AmenRa's picture

What if the Fed is the hidden indirect bidder and the POMO's are the currency swaps the Fed has been making? Could we then take out the POMO from the ID amount of the auction to get a better idea of the actual indirect bids?

Thu, 08/27/2009 - 14:17 | 50301 TwoJacks
TwoJacks's picture

Bernanke is definitely winning this war right now. There is a strong belief that the POMO's are driving equity prices higher. Fact is, these POMO's happen all the time, even before QE. So the bears run for cover every time one of these show up on the calendar. They are always doing them. Always. That's why the FOMC is called what it is, Open Market Committee; it's their job.

Perception has become reality

Thu, 08/27/2009 - 14:32 | 50342 Rex Havoc
Rex Havoc's picture

He's winning the battle - he's lost the war. It's just a matter of time before he/we realize it. Then it'll be ... farewell and adeu to you fair Spanish maidens, farewell and adeu to you ladies of Spain, for we've received orders to sail back to Boston, and never more shall we see the again...

Thu, 08/27/2009 - 14:30 | 50334 AmenRa
AmenRa's picture

I know POMO's have always been a part of their operation. I'm saying that currently the POMO's are being used to buy back the currency swaps with interest. FCB's aren't allocating any additional funds for UST so the Fed has to give them money to bid so the world believes there is still demand.

Thu, 08/27/2009 - 15:34 | 50498 monmick
monmick's picture

  • Indirects 61.2% vs. Avg 44.6% (Prev 62%)
  • Indirect bid-to-cover 1.40x

The Fed is going to need another round of currency swaps with FCBs pretty soon, by my calculations...

Thu, 08/27/2009 - 16:16 | 50583 tahoebumsmith
tahoebumsmith's picture

 Hmmmmmmmm what mask should I wear today?

..........

 

http://www.youtube.com/watch?v=gACEVoqT7cY

 

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