30 Year Auction Prices At 4.531%, Bid To Cover Dips

Tyler Durden's picture

The Treasury just priced the last of its three auctions (for a total of $66 billion) in the current week, in the form of a $13 billion in 30 Year Bond reopening. The auction came in strong compared to a when issued trading 3 bps wide, although the Bid To Cover did see a dip from last month's record 3.02, with $2.83 in bids tendered for every dollar allotted. More importantly, the dramatic drop in Indirect takedown seen yesterday in the 10 Year reopening, was not repeated with 47.2% of the auction granted to foreign investors. This was the second highest Indirect take down in almost two years, with just December 2010's 49.5% higher. Primary Dealers took a respite with 42% of orders allotted to the banks (which will flip a bulk of this bond back to the Fed shortly) , and Direct taking the rest or 10.8%. With this auction, and following $19.19 billion in maturities when all of this week's action settles over the weekend, will bring total debt subject to the ceiling to just $27.2 billion away from breaching the constitutional maximum. Prepare for that to be big news on Monday when the Mainstream Media finds the batteries for its calculator.

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baby_BLYTHE's picture

John Boehner and the Republicans showed that when it matters they are all talk and no action. Now that the real numbers have been materialized, it shows that Boehner and the rest of the Republican party forgot what transpired last Nov. The Tea Party and the Republicans had the momentum to shut down the government to force real change. Unfortunately, they showed that both parties are only interested in one thing, staying in power.

SheepDog-One's picture

Exactly, empty suit lying puppets, all of em. I say WE default on THEM!

Popo's picture

Increasing the debt and defaulting are pretty much the same thing.   Both indications that we can't pay our tab.

MassDecep's picture

They are all cut from the same cloth. For all the unprepared, poverty is just around the bend.Boehner and Dems are the same, just good cop, bad cop type mentality. You got to believe there is a huge amount of Blackmail being committed in our system today.

Dr. No's picture

Does this surprise anyone?  Just que up the tearful plea to pass TARP to dampen any hope from Boehner.

slaughterer's picture

Germany was a big Indirect today.  Look at the comments from the deputy finance minister today.

Bubbles the cat's picture
Bubbles the cat (not verified) Apr 14, 2011 12:23 PM

".....when the Mainstream Media finds the batteries for its calculator."


ebworthen's picture



SheepDog-One's picture

Isnt that an old-timey term meaning something to do with a bathroom?

becky quick and her beautiful mouth's picture

the roof, the roof, the roof is on fire.

SheepDog-One's picture

Man I used to love Becky Quick about 4 years ago, with her lazy eye and snaggle tooth and her 'Im here but I really dont know what the fuk Im doing here' attitude you could imagine you could definitely snag her at a bar at midnite closing time.

topcallingtroll's picture

I dont know why, but i am totally hot for Becky and Maria. If snaggletooth santelli can bone one then maybe there is hope for me.

RobotTrader's picture

Bonds just took off...

They have gone straight up since Gross announced that he has been shorting them.

SheepDog-One's picture

So now you own bonds too in the orphanarium portfolio?

Mr Lennon Hendrix's picture

Robo is like Paris Hilton, and only trades what is hot.

"Oh, gold is so hot right now."

"Bonds are so hot right now."

"Whole Foods is hot."

"Gold is so not hot right now."

"The markets are topping.  Definately not hot right now."

"The Pigmen are so hot right now."

"Equity is hot."

topcallingtroll's picture

Have you noticed he never documents his entry and exit points?

Yet he claims to be in the right place at the right time.

If u wade thru all my trolling u will see mine.

topcallingtroll's picture

Robofake is probably right about this one.

Bill Gross lost money the same way at the end of qe1.

Bond prices went up because of deflation expectations and will probably do so again at the end of qe2.

Prof Gulliver's picture

And bond-guy Bill doesn't strike me as someone who has the balls to hold on to a short position when it starts to go against him. He was taught a quick and expensive lesson by Timmay and Ben: Don't ever go against us.

Mr Lennon Hendrix's picture

Bonds will be used as collateral to renegotiate the world reserve currencie basket (whether this is a solution or not).  When the dollar implodes, China and the other bond holders will cry, "What will we do with our bonds?"  The IMF will offer their service, "You can use them as collateral on the new loans we will issue."  The Fed will agree to this, as they own just as many US bonds.  The world will rejoice, as it will be saved from the failing dollar.  The dollar will be replaced with a basket of currencie known as the SDR (special drawing right).  Bonds will not be the only collateral, gold and possibly silver and platinum will be used as well.  All will be well, so everyone can carry on playing farmville etc.

X. Kurt OSis's picture

Prepare for that to be big news on Monday when the Mainstream Media finds the batteries for its calculator.


Not bloody likely.... this is 'merica!  We don't need no stinking calculators.

Mr Lennon Hendrix's picture

Calculators here are used to tally Danzig with the Starz totals:


"Oh, she got a seven.  That is not hot."

X. Kurt OSis's picture

You lost me.  How do you get to 7 again?

Mr Lennon Hendrix's picture

Hold on, Kirstie Alley is about to be judged.

X. Kurt OSis's picture

Oooo!! Ooo!!  Kirstie Alley... It's fun 'cause she's a bus wreck. 

Kirstie Alley should marry Charlie Sheen.  Their offspring would be the embodiement of America.  It would be like the second coming. 

They will lay the baby in a manger.  All the sheep would hold a silent vigil and the Bernank, the Dudley and the Geethner would arrive from the east bringing gifts of FRN's, Maiden Lane RMBS, and iPads.

The vision brings tears to my eyes.

Milton Waddams's picture

How much was the Fed awarded and why is that total only disclosed quarterly?  Further, unless I'm interpreting it incorrectly, why is the Fed directly participating in Treasury auctions?  


See page 29, 30, 31, etc here: http://www.fms.treas.gov/bulletin/b2011_1.pdf

X. Kurt OSis's picture

I don't quite see where you are seeing that.

The Fed has never participated in an auction, as far as I know.  If you have evidence otherwise, I am willing to be enlightened (as that would truly be the end).

Milton Waddams's picture

What does this mean?


In addition to the $32,000 million of tenders accepted in 

the auction process, Treasury accepted $281 million from the 

Federal Reserve banks (FRBs) for their own accounts.


In addition to the $13,000 million of tenders accepted in 

the auction process, Treasury accepted $114 million from 

FRBs for their own accounts. 


In addition to the $35,000 million of tenders accepted in 

the auction process, Treasury accepted $717 million from 

FRBs for their own accounts. 




X. Kurt OSis's picture

I went back and looked at some of the older auctions and it does look like the Fed has taken down small pieces directly.  I happened to have the TIPS data up and there was a 10 yr auction in January 2008 when they took down 25% of the auction directly.  It looks like direct Fed participation comes in when the auction size is larger than average.  I guess they stabilize larger auctions. 

SDRII's picture

The monetary food fight gathering momentum with the IMF's #3 Shinohara weighing in that the BOJ must print to infinity. On the other hand BOJ Governor Masaaki Shirakawa opposes prinitng to finance reconstruction: "erode a very stable bond market ... erode confidence in the currency." US proxies pressing to debase the yen- not working today. When all else fails resort to insults:

"A key US diplomat to Japan was fired today (3/9) following tactless comments made against the people of Okinawa. Disgraced State Department bureaucrat Kevin Maher was quoted in saying that the Okinawans were “masters of manipulation and extortion” and added that they were “lazier” in producing less bitter melons compared to total output from other parts of Japan. Mr. Maher has since been demoted and has been replaced by ex-deputy chief of mission (Japan) Rust Deming" 

Nature had its revenge on the 3/11

Mr Lennon Hendrix's picture

Shirakawa opposes printing so instead buys ETFs to stick in the BOJ "portfolio".  Ha!  What a farce.

grovernors's picture

Nothing to see here. Move along.

The nature of the conspiracy to defraud can be best understood in comments by one of the major conspirators in the triumph of establishing the Federal Reserve, "Colonel" Edward Mandell House, who is purported to have said this in a private meeting with President Woodrow Wilson:

"[Very] soon, every American will be required to register their biological property in a national system designed to keep track of the people and that will operate under the ancient system of pledging. By such methodology, we can compel people to submit to our agenda, which will effect our security as a chargeback for our fiat paper currency. Every American will be forced to register or suffer being unable to work and earn a living. They will be our chattel, and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions.

Americans, by unknowingly or unwittingly delivering the bills of lading to us will be rendered bankrupt and insolvent, forever to remain economic slaves through taxation, secured by their pledges. They will be stripped of their rights and given a commercial value designed to make us a profit and they will be none the wiser, for not one man in a million could ever figure our plans and, if by accident one or two should figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debt to the registrants in the form of benefits and privileges. This will inevitably reap to us huge profits beyond our wildest expectations and leave every American a contributor to this fraud which we will call `Social Insurance.' Without realizing it, every American will insure us for any loss we may incur and in this manner, every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and, we will employ the high office of the President of our dummy corporation to foment this plot against America."



Saxxon's picture

Hearsay and creative writing.