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$35 Billion 5 Year Auction Prices At 1.33%, 2.82 Bid To Cover - No Records Here

Tyler Durden's picture





 

Today we had a second consecutive auction whose yield was not a record: the $35 billion 5 Year auction just priced at 1.33%, compared to 1.26% last month. This represented a 1.1 bps tail. The consecutive sequence of auctions that has come at an end, across the entire curve is now over. The Bid To Cover was also slightly worse than before, coming at 2.82, the lowest since June 2010. And another metric which was weakest (or strongest, depending on how one looks at it), was the Primary Dealer participation, which at 48.8% was the highest since June, while the Direct Bidder take down of 11.7% was the highest since May's 15%. This leaves just 39.5% for true Indirect bidders. Tomorrow is the latest auction in the belly, a $29 billion 7 Year, which will also come at less than a record result now that the grayish swanish curveshift wider is starting. Whether or not this means the end of the great IG/HY bull bond market, in addition to just the 30 year, is as of yet unceratain.

 


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Wed, 10/27/2010 - 13:22 | Link to Comment RobotTrader
RobotTrader's picture

All the guys who were front-running QE2 buying bonds, gold, foreign currencies, etc. are now selling anything and everything connected to that trade.

And the money is going into:

FFIV, BRCM, CRM, COH, PCLN, etc.

Funny how these cult stocks are totaly unfazed by market gyrations created by "inflation/deflation" debates, strong or weak dollar, QE2 or no QE2.....

Money just moves from one Pai Gow table to another.

Wed, 10/27/2010 - 13:28 | Link to Comment unum mountaineer
unum mountaineer's picture

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Wed, 10/27/2010 - 13:34 | Link to Comment plocequ1
plocequ1's picture

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Wed, 10/27/2010 - 13:49 | Link to Comment HarryWanger
HarryWanger's picture

And I was able to pick up some AAPL today under 306. Back in that trade. Although now this is a very long term play for me. No quick money here but long term is going to be great.

Wed, 10/27/2010 - 13:52 | Link to Comment unum mountaineer
unum mountaineer's picture

aha

Wed, 10/27/2010 - 14:45 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture
Facebook already has over 150 million mobile users and is likely the most popular iPhone app of all time.

But if Facebook is going to have as much impact on the mobile world as it has on the web, it needs to become a platform, and not just a service. And that's precisely why Facebook is working on its own mobile phone software.

During my recent trip to Silicon Valley, the idea of a Facebook phone is one of the juicier, wackier rumors I heard about. But before I could dig up any details, TechCrunch's Mike Arrington has the scoop: He reports that Facebook is working on mobile phone software, with star employees Joe Hewitt and Matthew Papakipos supposedly working on the secret project.

Read more: http://www.businessinsider.com/heres-why-facebook-is-secretly-building-a-phone-it-needs-to-be-a-platform-not-just-a-service-2010-9#ixzz13asXzzNG

Wed, 10/27/2010 - 13:27 | Link to Comment ZeroPower
ZeroPower's picture

USD shaking everybody down today as well, good for it! Looking forward to see EUR in the shitter.

Wed, 10/27/2010 - 13:28 | Link to Comment RobotTrader
RobotTrader's picture

Looking forward to cheaper gasoline prices too.  We'll be back under $3.00/gal. here in L.A. by the weekend.

Wed, 10/27/2010 - 13:27 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

With the biggest buyer in world history out there, opening his checkbook, I think the bid will stay good. 

The interesting thing will be to see how the newest, craziest, most deficit-loving bunch of RepubliKeynesians ever will handle their "messaging" on the Fed. If the Pauls and O'Donnells of the party don't know when to shut up, there could be a problem. 

The other thing I'd like to see is whether the Mortgage Insurance industry decides to FAIL itself during the lame duck Congress so they can spare the RepubliKeynesians the embarrassment of another Bush Bailout.

Wed, 10/27/2010 - 13:31 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Sorry, was I being a bit partisan there? 

Uh oh, I bet I'll get junked - like Juan Williams. 

Wed, 10/27/2010 - 13:33 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

P.S. - Who wants to bet me how much the newly RepubliKeynesian House of Representatives raises the Debt Ceiling?

Number? 

Do I have a number?

How much new "fiscal discipline" will they allow us to borrow? $1 trillion? $2 trillion? Can I get an over/under? 

Wed, 10/27/2010 - 13:59 | Link to Comment Gloomy
Gloomy's picture
`Every Man for Himself' as Emerging Markets Curb Currencies

Finance chiefs from South Korea to South Africa signaled they may act to slow gains in their currencies, just four days after the Group of 20 vowed to soothe trade tensions in the $4 trillion-a-day foreign-exchange market.

Asian currencies fell to a one-week low after Bank of Korea Governor Kim Choong Soo said today that measures to mitigate capital flows could be “useful.” Hours later, the rand dropped as South African Finance Minister Pravin Gordhan said his government will use part of higher-than-expected tax revenue to build foreign reserves as it attempts to weaken the currency.

The shifts suggest G-20 members will keep trying to defend their economies from the slide of the dollar and capital inflows even after the group promised Oct. 23 to refrain from “competitive devaluation” and to increasingly embrace market- determined currencies.

“The G-20 made a vague pledge not to manipulate currencies much, but there was no mechanism to ensure that each country will not keep taking unilateral measures,” said Win Thin, global head of emerging markets strategy at Brown Brothers Harriman & Co. in New York. “It’s every man for himself.”

Wed, 10/27/2010 - 14:06 | Link to Comment firstdivision
firstdivision's picture

The pump sure kicked on early today.  AUDJPY is getting pumped hard as I see so is SPX.  We are up 6 handles from the low about 30 min ago on................nothing.  Yay for EMH!

Wed, 10/27/2010 - 14:13 | Link to Comment HarryWanger
HarryWanger's picture

Because people fall for the bullshit. The sell off this morning was nothing more than a head fake. Everyone "suddenly" felt QE2 was off the table or going to be much lower than thought. So everyone starts selling. 

Then, of course, buying picks up because everyone really knows there will be a substantial QE2 and the whole merry-go-round starts back up again. It's a game. Just follow the bouncing ball.

Wed, 10/27/2010 - 14:22 | Link to Comment firstdivision
firstdivision's picture

Has it ever occured to you that the Fed leaked the story that the QE will not be as large to bring the market down for it's $2T of QE that it priced in.  The Fed knows that if Republicans get the battleground seats, and the Fed announces $2T in QE the next day, there would be a massive call for Fed auditing.  So the Fed needs to cool the market and launch a much smaller than wanted QE. 

Wed, 10/27/2010 - 14:24 | Link to Comment HarryWanger
HarryWanger's picture

No, it hasn't. This is all market manipulation by big traders. Period. Watch next week, when suddenly they are all "surprised" that the Fed actually is pulling out big guns on QE2. The market will fly because it was "unexpected". 

Wed, 10/27/2010 - 14:40 | Link to Comment firstdivision
firstdivision's picture

That is still assuming that the Fed pumps $2T into the market.  Besides the domestic market, do you think that soverign states will just watch us devalue to our hearts content?  The Fed is walking a fine line now due to being attacked on all sides. 

Wed, 10/27/2010 - 14:46 | Link to Comment HarryWanger
HarryWanger's picture

Dollar has been much lower in recent history. Wake me up if it goes below 70. Maybe, just maybe, that will be when the fun starts kicking in. Until then, this is nothing new.

Wed, 10/27/2010 - 15:19 | Link to Comment firstdivision
firstdivision's picture

When was the DXY below 70?

Wed, 10/27/2010 - 15:24 | Link to Comment HarryWanger
HarryWanger's picture

It wasn't. That's my point. It's been much lower, relatively speaking than now so there will be no rising up from sovereign states. But if it gets that low, look out! Then the fun begins.

Wed, 10/27/2010 - 15:38 | Link to Comment firstdivision
firstdivision's picture

Well what do you think the DXY would do if $2T is announced.  That is why I am saying the >=$2T is all speculation and is not even remotely grounded in reality.  I believe <$1T is more realistic.  

Wed, 10/27/2010 - 14:43 | Link to Comment firstdivision
firstdivision's picture

AUDJPY has been gapping all over the place for the last 30 min on my 1 min chart.  I keep tapping my screen but the chart is still the same.  Can anyone confirm?

 

<edit>NVM, refreshing a couple of times fixed it.  Now everything looks normal for this minipulated markets.  Carry on.<edit>

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