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32 Billion 3 Year Auction Prices At 0.862%, Weakest Bid To Cover Since February As Directs Jump
Today's $32 billion 3 Year auction closed and confirmed that the deterioration in sentiment toward bonds is picking up. The auction priced at a high yield of 0.862%, an exactly 50% jump compared to last auction's 0.575%. More concerning, the Bid To Cover came at 2.906, the lowest BTC since February's 2.83, and compared to the LTM average of 3.115%. The indirect take down was weak, at just 36.7, although better than the 29% from two months ago. What was surprising is that Direct Bidders took down a whopping 18%, or $5.7 billion of the auction, relative to $13.7 billion submitted. Altogether a weak auction, and one that confirms that while the belly is very weak today (the 10 Year was trading north of 3.1% last), the wings are also taking on water. The only question is whether the steepness of the 7s30s and 10s30s can be preserved. For the time being the belly is widening more than the 30 Year, making life for the banks unpleasant.
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Makes sense though with money moving into equities.
Of course.. Has nothing to do with artificially low rates and inflation fears..
Your pal, Bubbles, has lost control
Wanger. QE2 is an epic fail.
I wish you would have stayed gone.
Harry, you've been the first comment today on more than one ZH post..! I thought you were super-duper busy with all the orders your company was taking? How did you manage the time to be first on not one, but TWO posts?
I mean, at least try and fake the appearance of being busy. Seriously.
Not to fear. The Ben Bernank and The Goldman Sack will click a couple of commands on the computer and all will be good again. Nothing Exel couldnt handle. Its all a virtual cumfest
Virtual? C'mon, you are talking about Ben Shalom Bukkake.
All money is going into equities. This is bullish for stock. SPX 1500
Yeah, I always gets super bullish when
the Fed Chairman loses control of
interest rates. The only pleasant thing will be that the banksters are screwed.
Do you think it has something to do with extending and expanding tax breaks with record fiscal deficits? There can now be no doubt that Congress is "going all in" to fuck over every generation that follows them. Can somebody say risk premium? We are so screwed.
I think smart money is going into gold and silver....money into equities is the same ponzi scheme....the volumes way down..but the market up....and little people pulling their money out of funds...and insiders selling big time...and I would not buy bonds two years ago..they stank....if you are buying them today...well.....see ya later...this whole fiasco is about to fall apart...the Euro hangs on Irelands vote today..what a joke that is....
Irelands vote has allready been pre determined and so ordered , nothing is hanging on it.
"this whole fiasco is about to fall apart"
Where have I heard this before?
Around March 2008? Where nothing has changed since?
YOUNGMAN well the CHINESE money (US dollars) is definitely going into gold purchases! China swapping their dollar based debt into gold holding up 500%....suck THAT fat one Ben Bukake!
There won't be anything like a failed auction as long as Treasury/Fed pair can re-cycle the money; if they buy back last week's auction, there's likely enough money waiting for the next "successful" auction. A low frequency trade (LFT) of sorts.
You're about 3 months behind the curve. The bernank has now lost control. No auction has gone well lately. All part of the plan. Rising rates and a gimp economy, not that
we don't deserve it.
As long as the american people allow it and do nothing, then yes they deserve it!
Nice going, Sack. The PDs have
pucked you again, boyo. Pucker up,
smart guy.
You glazed over the re-cycle. BTC has lost its meaning in this context as rates can be carefully managed. As long as there is not enough new money (there isn't) there is enough re-cycled money to buy everything at the just the right price.
Oh, then why cant Benny Boy support bonds even with a free printing press? I dont see at all how youre calling 'all is well' on this shit.
And who is saying "all is well"?
I'm just writing my view on why BTC is not a reliable measure for a weak Treasury auction in the current environment.
I think we have to consider the
possibility he was just lying again
just as he did about monetization.
His masters have told him to move
the sheeple out of bonds and into
equities so they may unload. What
a scam.
Better put some SOMA on that Ben.
The Ben Bukake's entire QE plan hinges on supporting bonds, theyre falling apart DUE to monetary policy. So how does promises of more reckless insane monetary policy fix it? It doesnt.
The 10-year is up .21% on the day!
10yr T-note
3.140.21
ffs, dbl post
I have no illusions about the health of the USA $ system, but why is this trend necessarily a problem? Looking back to 2003 time frame, indirects were lower, PD takedown was higher, BTC was lower, and rates were higher. Are today's numbers "worse" in a historical perspective?
Besides, Brian can buy all these bonds back next week.
So, besides the obvious problems with this nonsense, what's the big deal? How is this more of a failure than last week or the week before?
Obviously, Brian can't do shit.
Bwahahahahahahaha.
A few more days of this and we'll have
a complete disaster on our hands.
We'll be right there with Portugal.
Nice going, Ben.
Is it planned or are they fuggin idiots?
Doesn't matter, the result is the same.
Let's get our 10 year at parity with
the Portugese 10 year.
some months back when FED announced that they may be going for more QE...the yields on the 10 yr went down sharply......may be from around 2.9 to 2.67 very quickly......why are we now seeing a rising yield when QE2 has been in operation....then the rates came down because of the USA safe heaven status........but what makes the yields go higher now after QE2 has been in operation....
Bernanke said he wants a stock market bubble, so he is buying treasuries, and forcing yields down to force money into stocks. That's what he said. A stock market bubble in Bernanke theory will let the consumer know the economy is fully recovered, and feel secure about the state of the economy so they can go spend all their money.
Hey.. dopey, it looks like he's forcing
yields up, if anything, so put a sock
in it.
Of course, the result of poorer sentiment toward bonds, which was the plan all the along. Bernanke doesn't care about a bond bubble, he cares about a bubble that creates an illusion of wealth, and prosperity. The stock market is an accepted symbol of economic health by majority of people. He rather target a stock market bubble versus a bond bubble. The Fed can always buy bonds in the short run, so he doesn't care. Some speculation have been that Fed buying bonds because to support the bond market in case of a bond collapse. The ulterior motive was always to crowd out the bond market with Fed purchases so money that's not in bonds will go to something like stocks.