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$31 Billion 7 Year Auction Closes At 2.815% High Yield, 2.88 Bid-To-Cover
And so another $120+ billion in coupons are gobbled up this week by the primary dealers, the Fed's UK Operating companies, and a few rich Chinese and Greenwich individuals.
- Yield of 2.815%, on expectations of 2.802%, previous was 3.21%
- Bid To Cover 2.88, highest since February's 2.98
- Direct Bidders 11.4%
- Indirect Bidders 51.1%
- Primary dealer hit ratio 19.92%
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So, this would be good news, then?
/sarcasm
I feel better.
Any auction that does not fail is good news.
I don't understand bond auctions very well. I understand the concept that the FED is probably overtly monetizing, but could someone tell me in a breif post how to interpret the constant data that ZH offers on these. Do you want to see more indirect or direct? where is the tip off? Thanks!
Hi, I would like to lock in a REAL negative interest rate for the next 7 years.
Oh, one other thing: I would also like less principal if for some reason I need to liquidate prior to expiration.
Thank you.
people who don't understand deflation are funny
deflation or inflation: what's really funny are the people who think "flight to saftey" equals 7-year paper.
7yrs is the belly. that's the value. 5s/7s=60bps | 7s/10s=50bps
2.80% + 2-something% in deflation = 5% real return....
should beat most other asset classes by double digits. of course, just my opinion. personally, I'd be in 30s.
The US already has too much debt to ever pay back.
Deflation will just bring forward the date that they stop pretending they can.
I wouldn't touch a 30y bond with somebody else's money.
Indirect Bidders = Ben and Co bidding under the guise of a foreign bank...
Perception is everything folks.
If you're right then the Fed is already printing away the US debt. With an average of 2.5 year maturity for treasuries I'd guess the fed will have paid off half of the US Debt by 2013.
Somehow it's hard for me to imagine them being so benevolent.
Look at me! I'm holding on!
http://www.youtube.com/watch?v=xqp1BsQjD6E
Assumed it's whether we're right or wrong
We're doomed and there's plenty for all
Dress all these turnin's, they're doubled in time
The touch of life, what's failed to mention so far?
Do you want enough?
Do you want it all?
Should you need it at all?
Takes a man to see
Do you want enough?
Do you want it all?
Should you need it at all?
Do you want it or not?
The problem with these bonds is they pay off in US dollars
All those medium/long term T' note buyers over the past few days just got raped again. Look at the yields climb as scam street unveils another no volume melt up. When you buy these notes with such low yields and then the yields explode upward like today, all that money moved out of the market gets tied up with no way to get out of the notes without serious losses. They are in turn, left holding the Treasury bags. Sooner or later, people going to get tired of this and stop buying T's altogether. Many already have, which is why the FED is the largest purchaser of notes the past 2 yrs running.
Like I said, I am only flipping the 4wk bills right now, just so I have money ready to rock when these rates explode, as I am surely not putting money in the Scam street stocks. Just a matter of time before it all implodes on Little Timmy and Baby Benny.