$32 Billion 7 Year Auction Closes At 3.374%, Very Weak Auction With Huge Tail

Tyler Durden's picture
  • $32 Billion 7 Year closes at 3.374%, allotted at high 83.04%, previous at 3.078%!
  • Bid To Cover at 2.61, Previous at 2.98, average overpast year 2.67
  • Indirect Take Down 41.87; Direct Take Down 8.11%
  • Indirect Hit Rate 82%
  • When Issued was trading at 3.338%, a massive tail
  • 10 Year about to break 3.90%

The chart says it all:

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jkruffin's picture

Damn, i was close yesterday when I said 3.31  and the high was 3.37 and 83% alloted at the high,  RUT RO!!!!

anarkst's picture

Pretty much says it all.

hedgeless_horseman's picture


is always and everywhere a monetary phenomenon.

—Milton Friedman


Shameful's picture

Did the printing press break?  Or is Zimbabwe Ben waiting on a fresh shipment of ink and paper?

SV's picture

It's all about maximizing effect right now - of a swamp drain.  As I posted in a previous thread on this general topic, they're flirting with it getting really ugly and when it does they simply shank the equities to find new buyers.  Lather, rinse, repeat.

I have to say that's a nice impulse spike...

Shameful's picture

I'm not saying that won't happen.  I just thought they might try to gun it all, keep rates down via QE (official or otherwise) and let the market be up to keep the illusion running.  I would have expect them to wait a week or more to have something else spike on the news radar so people don't equate market meltdown with health-care.  Not saying they are related, but being close many people would think they are.

Al Huxley's picture

Equity market's exhibiting plenty 'irrational exuberance' right now, doesn't need any help from interest rates to push it.  Sure going to hurt some of these latecomers though, if equities do need to be sold to support the bond market.

Cognitive Dissonance's picture

That's a mighty fine avatar you have there sheeple. Isn't it time for your spring shearing? Come on, this won't hurt a bit.

sheeple's picture

That's Captain BB's job, shearing sheeps

carbonmutant's picture

If we could be assured that shearing sheep was all he was going to do...

SV's picture

Let's keep it PG during daylight hours... LOL

MsCreant's picture

Big Ben B.: "It's the sheeps' fault. The sheep were asking for it by looking the way they look, flaunting their puffy, bubilicious, frothiness, know what I'm saying?"

Cognitive Dissonance's picture

Sure, go ahead, blame it on the attractive menace, aka the poor puffy, bubilicious, frothy sheep. :>)

Yes We Can. But Lets Not.'s picture

Baaa baaa

baa baa

baa beeh

behh beeh

beh beh

beh ben

ben ben

Ben Ben

Ben Behhnn Bennny Bennnnnyyyyyy

non-anon's picture

Where men are men and the sheep tremble.

MsCreant's picture

I worked so hard to restrain myself and behave...truly a carbonmutant. Bad carbonmutant, bad. :-D

carbonmutant's picture

My apologies for contributing to the delinquency of any financial analysts or day traders. LOLZ

Cognitive Dissonance's picture

The Federal Reserve. Where men are men and sheep(le) are nervous.

sheeple's picture

So BB knows how to operate a printing press and dealing with farm animals, by Jim Roger's view, he's set for life for the next 10 yrs

Gordon_Gekko's picture

If you can call what Ben does to farm animals "dealing".

ghostfaceinvestah's picture

mbs buys are slowing down, less money that can go into treasuries, we are gonna hit the wall real soon.

Cognitive Dissonance's picture

And still the giant bellows pumps up the stock market. Whosh (inhale) Whosh (inhale) Whosh

It's like magic mommy. Do it some more. Make it bigger mommy.

lizzy36's picture

Dow has to go up 150 pts today, to hit the dow 36,000 mark in 249 days.

schoolsout's picture

It's most certainly trying

bingaling's picture

you could argue that money is flowing from treasuries into the dow .

fuggetaboutit's picture

why would money flow into equities as the funding mechanism for what little economic activity there is breaks down? Dividend yield for the S&P 500 is 1.8% right now, that is about a 6 year low - for equity risk, you want 1.8% return?

bingaling's picture

Just saying the feds competition is the dow - I am with you on this but I think that is what the response will be from pundits . The S&P is up 73% nobody wants to miss the price of the stocks rising . I am playing devil's adovacate here I am on your side 100% and agree with you ,but I think this is how it will be played in order not to get rising yields with a dropping market .If you invest in Banks you are almost guaranteed 1% daily , greed rules .

Rick64's picture

It's like magic mommy. Do it some more. Make it bigger mommy.

 That don't sound right. lol

Cognitive Dissonance's picture


After the first reply (when I could no longer modify my comment) I realized it would also work as a low budget porn movie. Or worse.

lsbumblebee's picture

Maybe people will buy them if Ben wrapped them in plastic and put a picture of a baby on the package.

sheeple's picture

maybe people will buy them if you place a stamp behind them which says: "MADE IN CHINA"

Postal's picture

Of course! Have to send our money to China so they can lend it back to us. "Free" healthcare for all! [/sarcasm]

sheeple's picture


Primary Dealers:

BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Securities America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J. P. Morgan Securities Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC.
Wal Mart

faustian bargain's picture

Well...Walmart did want to become a bank, didn't they?

drbill's picture

No worries. They just wanted to see if they could sell bonds without the market tanking. Now that they know the answer, I suppose the market will tank soon. Then they can sell bonds again.

Sudden Debt's picture

Looks like a rating drop if this goes further at this pace for another 2 to 3 months.

economessed's picture

I'm not quite sure, but if it is what I think it is, there is a Genie emerging from that bottle, and he is nearly impossible to get back in.  Wow -- look at that -- he's just floating out of there leaving a vaporous trail, and it looks as if he has a scowl on his face!

fuu's picture

WTF did the directs go?

PhD's picture

They are flushing our future into the toilet and our only mean of resistence is battling windmills.


Stuck on a sinking ship, but atleast we have this depressing background music

jkruffin's picture

Anyone with money long is this stock market, better think how to get it out fast!!  Even Helicopter Benny!

Pladizow's picture


HelluvaEngineer's picture

I'm getting a bad feeling.  What if we've been so busy looking for conspiracy theories that we're overlooking the obvious.  Any chance they are going to do exactly what they said and there is really going to be a huge liquidity drain at the end of this month and the stock market is just so impressed with itself that it hasn't caught on yet?

John McCloy's picture


In this environment that theory would seem to indicate that the a crash is inevitable. Liek for example if you flip a coin 100 times and it is heads 97 times (Record bear market rally) that eventually 97 tails are in the cards.

Shameful's picture

Sorry the math nerd forces me to jump in here, that's not actually correct.

One you have the event, here the coin flip, it has no impact on future coin flips IE the coin does not remember how it came up before and t shoes not change the odds of future flips.  You could have 100 heads in a row, but none of those past coin flips impact future coin flips.  To make that comment about 97 tails in the future you would need to make the prediction before the coin flips. 

Example 100 coin flips should have 50 of each.  Now lets say you have 50 heads in a row.  If you then predict that the next 50 will be tails you are wrong, math says the next 50 should be 25 heads and 25 tails.

perchprism's picture


It's called the Gambler's Fallacy, or the Maturity of Chances.