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$35 Billion 2 Year Auction Prices At 0.789%, 3.16 Bid To Cover
Today's first of three auctions, which will total $99 billion and likely put the Treasury on the verge of breaching its debt ceiling, was an issuance of $35 billion in 2 Year paper. Coming at a high yield of 0.789% (largely expected per the When Issued), this was the highest issuance yield since April 2010, just before the market tumbled and the ground was set for QE2. The bid to cover came at 3.16, higher than last month's 3.03, but still the second lowest since September 2010. Direct bidders, after taking a break in the last auction, double their take down from 6.81% to 13.31%, relieving the Primary Dealers from some of their purchasing obligations, accounting for just 53.72% or well over half of the entire auction, which will soon be flipped right back to the Fed (keep CUSIP QL7 in mind: we are confident more than half of the PD's $18.6 billion take down will be monetized by the Fed within 3 weeks). Lastly, Indirects accounted for a modest 32.97% of the take down.
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Gotta keep the gubmint spinning no matter what.
I would personally like to thank these new direct bidders (whoever you are) for buying our worthless debt, and relieving the strain on our Primary Dealers, who are growing tired and weary of all of our free government handouts. We hope you'll be happy with your new purchase. And we promise to pay you back in teeny little midget dollars, worth no less than 3 cents on the current dollar.
Your Pal,
Uncle Sam
The bid-to-cover is such a bad joke, yet nobody in the mainstream even knows enough to chuckle at its absurdity
here is the simple truth, you whiny sacks of watery meat: inflating our way out of this shit is the only game worth playing now. Deflation isn't even the concern - mild inflation alone would be enough to continue to the implosion of the housing market and the US economy soon after. Enough inflation and we're all saved. Deficits - won't matter with enough inflation. Underwater mortgages? Not with enough inflation. Ruined savings, you say? The vast majority of Americans have zero savings, or just what their house it worth. Inflation is the only realistic solution, no, the best solution, for us all.
Oh you think because you own a few bars of gold and silver you'll somehow make it out ok if everything collapses? lolz.
Right. All is good... until you have to eat or gas up your car, or heat your home. But that doesn't really matter. Does it?
</sarc>
inflated commodity prices -> inflated revenues -> rising wages
It's slow and painful, but a lot less painful than the whole economy crashing. Just hedge your finances to the gills.
You have the painful part right. Painful for anyone who has a savings or investment. The only ones that will do OK are large PM investors and young people. Young people because they will still work and grow (outlive it).
Everyone else is screwed.
Rising wages my ass.
*dup deleted*
markeshark don't forget the peasants have lots of guns...
another hedge built in to the US constitution...
Deflation and inflation are economic terms that are useless. What is important is "buying power" and what people around the world will or will not take for currency.
MackarelShark is the attitude of the overlord bankster 666 overclass which by dint of its own corruption and manipulation are well esconced in plush gardens behind high walls while the 90% of Americans who will not be able to keep up with his wonderful inflation watch their lives deteriorate into permanent debt and tax bondage to the 666 banksters.
To say that inflation is better than complete collapse (with it's attendant political and economic shake-up and rebirth which is precisely what is needed) is to suffer from Stockholm Syndrome.
shit, I loathe the banking class as much as anyone. But if everything collapses the 90% of americans you mention (myself included) will bear the brunt of that - not the crap floating on the top.
You have it backwards. See all of their money is in paper, you and I have a very small amount of fiat money compared to these people, a dollar collapse would wipe them out, not us.
In all seriousness these posts confuse me. I've tried to decipher exactly what they mean but I'm very new to the finance/flip that bond game. Can someone in laymans terms explain what these numbers, and this means?
Not trying to beat a dead horse here, but if you aren't familiar with what this means it's not as easy to understand if you're already in the know.
Help a jackass out. Thanks.
Let me sum up; Buttercup is marrying Humperdinck in little less than half an hour. So all we have to do is get in, break up the wedding, steal the princess, make our escape - after I kill Count Rugen.
Humperdinck!
Humperdinck!
Humperdinck!
Don't look at my junk bitchez!
See the following links:
http://www.newyorkfed.org/aboutthefed/fedpoint/fed41.html
http://www.treasurydirect.gov/indiv/products/prod_auctions_glance.htm
Furthermore, there are three types of bidders: Direct, Indirect, and Primary Dealers. PDs, as TD references above, are obligated to bid at auction.
Bid-to-Cover (via investopedia): What Does Bid-to-Cover Ratio Mean?
A ratio that compares the number of bids received in a Treasury security auction to the number of bids accepted. A ratio above 2.0 indicates a successful auction comprised of aggressive bids. A low ratio is an indication of a disappointing auction, marked by a wide bid-ask spread.
Thank you
the joo york fed will tell you how shit really works. :rolls eyes:
Wash, rinse, repeat.
SPX
Update.
http://www.zerohedge.com/forum/99er-charts-0