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$35 Billion 5 Year Auction Prices At 2.041%, Monetization Of Primary Dealer Takedown To Occur On February 9

Tyler Durden's picture





 

Today's $35 billion 5 Year auction closed at a 2.97 Bid to Cover, the second highest following the 3.06 in July of 2010. The bond priced 2 bps inside of the When Issued indicating a substantial interest. The high yield dropped marginally from the last auction which came at 2.041% (29.85% allotted at high), with Indirect Bidders taking down a substantial portion of the auction or 45.0% a major jump from the prior 35.6%. Still there was a little change in the hit rate on the Indirect bid which was 76.6% compared to 80% last time. Altogether just another auction: there are many more to go. We are confident primary dealers will monetize roughly 30% of their allocation at the first opportunity, which will be on the February 9 02/15/2015 – 07/31/2016 POMO.

 


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Wed, 01/26/2011 - 14:32 | Link to Comment NOTW777
NOTW777's picture

watch wheat; if 900 goes, 08 high of 1300 could be next

Wed, 01/26/2011 - 14:38 | Link to Comment earnyermoney
earnyermoney's picture

Notice the WSJ article on rising food prices being blamed on "specualtors" instead of BB's money printing? If you fail to allocate your capital per the directives of the Fascist Federal Reserve, you'll be labeled a speculator.

Wed, 01/26/2011 - 14:45 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Wait until you are labeled an enemy of the state.

Almost there.

Wed, 01/26/2011 - 15:12 | Link to Comment Sudden Debt
Sudden Debt's picture

nononononono...

IT'S BECAUSE OF THE SNOW!!

 

don't you people watch BooB TV?!

Wed, 01/26/2011 - 14:34 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

We are rapidly moving from the sublime to the ridiculous. Nothing to see here, move along.

Wed, 01/26/2011 - 14:59 | Link to Comment EB
EB's picture

We are confident primary dealers will monetize roughly 30% of their allocation at the first opportunity, which will be on the February 9 02/15/2015 – 07/31/2016 POMO.

Right about the time the first projected SLP drawdown occurs?  Should be a banger V-day, culminating with a Ben/Sack/Geithner toast: gentlemen, to evil.

CD: nice post over the weekend.  I've haven't historically been in the comments much, but noticed a shift over the last few months.  Exaustion?  Perhaps.  This is a marathon, which favors the intractable state.  However, it is not perfectly intractable.

Wed, 01/26/2011 - 15:09 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Thank you. I was delighted to see so many veterans peek out from the shadows and declare they are still here. I found myself smiling again and again as I recognized one old face after another perk up and comment.

Bravo everyone. Family first, then community....virtual or otherwise.

Wed, 01/26/2011 - 14:34 | Link to Comment Sudden Debt
Sudden Debt's picture

Slow day today... no news... AT ALL!!!

Wed, 01/26/2011 - 14:43 | Link to Comment cougar_w
cougar_w's picture

Ah, now we see where all that missing Tunisian gold went.

Wed, 01/26/2011 - 14:44 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

TT

Tunisian Tungsten

Wed, 01/26/2011 - 14:50 | Link to Comment Oh regional Indian
Oh regional Indian's picture

As I've read Zh over the past 9 months or so, the daily reporting of debt sales finally started to kick in.

See this and freak out and then come back... I did

http://www.usdebtclock.org/

That is it. The madness, visualized, real. See small business assets and corporate assets shrinking in value, fast.... the writing on the wall, clear as day!

This is how the world runs. This is how the debt fueled world runs/burns. Always living in tomorrow, next year, 10 years out. Knows that fiat is always inflating, deflation is always a temperory correction, so always inflating. IRR/NPV.... would drive both lender and borrower crazy. PErpetual cognitive dissonance on both sides.

Totally nuts! Totally freaking nuts.

The Supply Side World of finance and industry has destruction built into it's fabric. No other way it can survive, because there is NO such thing as infinite growth.

Feels like an AHA moment!

Thanks Zh and all you awesome commentators...

ORI

http://aadivaahan.wordpress.com/2010/11/12/wisdom-for-warriors-3/

Wed, 01/26/2011 - 15:04 | Link to Comment HarryWanger
HarryWanger's picture

This puts it in perspective:

"The national debt is a big number, but it isn't excessive. On a relative basis, the federal debt burden has hardly changed over the past 20 years. In fact, while the absolute amount of debt has ballooned, the percentage of the federal budget spent servicing that debt has actually decreased. That's right: in 2009, net interest payments on the debt decreased from the year before, and the overall percentage the U.S. spends to service its debt (currently less than 3% of GDP) is lower than it was in the late 1980s and most of the 1990s."

Wed, 01/26/2011 - 15:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Harry, you could rationalize away Venereal Warts on your Johnson as good.

Wed, 01/26/2011 - 16:06 | Link to Comment ThreeTrees
ThreeTrees's picture

"It's the start of a new trend, it's the start of a new trend, it's the start of a new trend..."

Wed, 01/26/2011 - 16:36 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

An oldy but goody. I miss the WallStreetPro2.

I wonder if he had a heart attack one day beating the hell out of some cheap Chinese crap?

Wed, 01/26/2011 - 15:14 | Link to Comment Oh regional Indian
Oh regional Indian's picture

On a relative basis? Nothing relative about compound interest Harry. I don't buy it. IF your statement is true, it is so because of some accounting gimmick. 

Einstein was a dimwit on physics but he sure as hell understood all about God and the power of compound interest.

ORI 

Wed, 01/26/2011 - 14:46 | Link to Comment chartcruzer
chartcruzer's picture

January 25th, 2011

AR Newswire.

Tonight in the state of the union address, it was announced that a deposit of rare hopium was discovered that was so large that it will save the US from one of the largest economic debt bubbles in the history of the world.   An expert advisor commented after the ground breaking speech that the hopium deposit is so vast that future generations of Americans will indeed be saved from a bankrupt federal government, insolvent states/cities, unsustainable pension/healthcare systems, and collapsing real estate markets.

The financial markets applauded the announcements as the hopium is reported to be so pure as corporate taxes will be reduced even in the presence of desires to radically cut exploding federal deficits.   The first recipiants of the hopium will be the new and completely reformed US banking system which will bolster confidence in continuing profits and salaries.

The fringe element known as Citizens Against Global Hopium Depletion, derided the announcement noting that they are making progress with a chemical process that will transform common sea water into a usable synthetic hopium.  Hence, the limited real hopium in the earths crust should be preserved for future generations to use in earnest.  

Finally, NASA announced that they will annotate the discovery by launching a new geosynchronous satellite over the US that is shaped like Sputnik and made almost entirely of irradiated hopium.   The satellite will be a beacon of light in the sky that will inspire future generations.

http://www.scribd.com/doc/47609543/The-Crash-of-the-US-Empire 

 

Wed, 01/26/2011 - 14:47 | Link to Comment sabra1
Wed, 01/26/2011 - 14:54 | Link to Comment Misean
Misean's picture

"We are confident primary dealers will monetize roughly 30% of their allocation at the first opportunity, which will be on the February 9"

Well, at least there are a few rules. They gotta hold that crap for 2 weeks. Good thing things aren't beginning to spin out of control.

Wed, 01/26/2011 - 14:56 | Link to Comment topcallingtroll
topcallingtroll's picture

Just keep in mind that treasuries are the most reviled asset class other than collecting Hitler dingleberries or Stalin toe jam even when signed and authenticated. A brokerage guy said even the mainstream investor doesnt want them treasuries. He posted here recently. Its something to think about.

Wed, 01/26/2011 - 15:27 | Link to Comment cougar_w
cougar_w's picture

I hear the Tunisians and Egyptians can't get enough of them. Only use they can find for their tungsten is buying our Treasuries.

Wed, 01/26/2011 - 16:08 | Link to Comment topcallingtroll
topcallingtroll's picture

Aahhh....then they are sophisticated contrarians....i just thought they were just a bunch of turban wearers that never took a bath. They might be on to something.

Wed, 01/26/2011 - 14:59 | Link to Comment The Axe
The Axe's picture

VXX another 52 week low....market could care less...SP 1300 on board today...joke..

 

Wed, 01/26/2011 - 15:08 | Link to Comment Deep
Deep's picture

Is it true the Fed is gonna start buying used toasters from the masses at full price. Is that what QE12 will be.

Please let me know, i have a lot of used toasters.

 

 

Wed, 01/26/2011 - 15:17 | Link to Comment countryboy42
countryboy42's picture

You read it wrong, it said used toilets. They're going to call it "Cash for Crappers"

Wed, 01/26/2011 - 15:12 | Link to Comment 99er
Do NOT follow this link or you will be banned from the site!