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$40 Billion 3 Year Auction Closes At 1.49% High Yield, Indrect Bid At 38% Compared With 60.9% In December
- Yields 1.490% vs. Exp. 1.513%
- Bid To Cover 2.98 vs. Avg. 2.99 (Prev. 2.98)
- Indirects 38% vs. Avg. 59.02% (Prev. 60.9%)
- Indirect Bid To Cover at 1.37
- Alloted at high 79.20%
- Direct bid surges from 2.9% in December to 23%
Indirect bid plunges to 38%, from 60.9% in December, 68.5% in November and a 59.02% average. Direct Bidders jump to a record 23% compared to 2.9% in December. This is a very material development in change of the traditional purchasers of govvies.
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Gold bombed just ahead of the auction. Shocker!
Yeah, I was about to say, somebody's effing with gold right now.
"sombody's" been effing with gold for about 10 years!
I've read these auction posts for the past couple of months, but I have to admit my ignorance in how to interpret them.
Any chance of getting a quick tutorial on how to read the implications, trends / meaning in direct and indirect bid, bid-to-cover, competitive, high allotment, etc.?
Again, it is not so much of the definitions of these or the bond math itself, but how to interpret them. What do the absolute numbers and trends tell us?
Alternatively, does anyone know of a site that has this (no reason to reinvent the wheel)? I apologize for my ignorance on this one.
Thanks
I will similarly plead ignorant and second mouse's request.
et voila...
'the proportion of securities sold to indirect bidders is commonly cited as a proxy for purchases by foreign central banks.'
http://www.ny.frb.org/research/current_issues/ci13-1/ci13-1.html
barthezz
Wow, quite a bit of info to digest there. Thanks. I'll plow through that. I may come up with some other questions later as the implication to these is that the indirect bidder information is suspect, and Fed buybacks of treasuries after 5 days or so.
Looks like a great start. Thanks much
Merci!
Hey, somebody bust open the "Flight To Safety" kit! Who we going to war with, Yemen? Ben, you guys got gold handled, right?
Primary Dealers are doing the dirty work for the Fed. One wonders if, indeed, the banks are willing buyers and are still stuffing these notes like crazy in reserves.
It certainly seems magical, doesn't it?
I want everyone to take a good look at what is happening right now. risk aversion returns, bonds up, everything else down, INCLUDING GOLD.
i.e. money is being herded.
The treasury auction calendar has been a great tool for timing gold/sliver purchases over the past few months.
Hmm... Sounds like
"...There will come such a time in the near future, when the flight from risk assets, engineered by the Fed, will become as pervasive as today's dollar carry trade. Ultimately the Fed is more interested in low rates than 100x+ P/E's (one hopes, or else a gaggle of retarded monkeys can do Bernanke et al's job better). And with Treasury QE done, and MBS being gamed to the point where the FRBNY is doing all it can to obfuscate just what is really going on in that particular market, one can be sure that Bernanke will be all too happy to sacrifice equities at the bond altar."
http://www.zerohedge.com/article/faber-gold-and-800-sp-barrier
Of course they knock down gold, which simply makes for needing fewer Federal Reserve Notes to obtain a few more COMEX contracts (and taking delivery) less 'costly'. Thank you, was waiting for another dip in gold to get a few more contracts.
The only bonds I trust has the first name Barry.
The Fed will go shopping in a few days.
Hubris, thy name is Dimon.
SAN FRANCISCO, Jan 11 (Reuters) - JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon defended the bank's pay policies on Monday and said he was "tired" of his employees being vilified over bonuses.
Rising bonuses have drawn criticism from politicians and others, who complain Wall Street's losses seem to be socialized while its profits are privatized.
Dimon, along with the chief executives of Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and other big banks, will be appearing this week before a commission created by Congress to look into causes of the financial meltdown.
JP Morgan pays its employees for sustained performance over multiple years, Dimon said on Monday.
"We do not have change-of-control agreements, special executive retirement plans, golden parachutes, special severance packages or merger bonuses," he told a JP Morgan healthcare conference, adding that many of company's employees are in client-facing jobs and work hard with small and mid-size businesses.
"I am a little tired of the constant vilification of these people," he said.
There is no more fruitless exercise than trying to get the general public to feel bad for millionaires. But they do keep trying don't they.
Yo, Jamie? I don't give a rat's-(redacted) what you pay your peeps. Just don't come crawling to me to mortgage-away my kids' future when your booms go bust. Savvy?
Dear Mr. Dimon,
First off let me congratulate for the impending nomination for Secretary of the Treasury. I am truly looking forward for a failed Banker running the Treasury Department.
As one of the 360 million people who helped bail out your corporation, if you would like America to stop "vilifying" your employees, could you please return ALL of the money you received from the government, and cease all use of Federal guarantees, including any loss sharing arrangements you have the FDIC.
If such action requires that your corporation be liquidated, then guess what.. That's capitalism.
Until then, could you please shut up about your saviors are treating you.
Thank you,
An American Citizen
one more thing, Mr. Dimon. Can you please provide us a detailed spreadsheet explaining what your corporation would be worth if you marked you assets to market rather than to the model that implies that assets do not drop in value.
Thank you again,
An American Citizen
Given that the Fed has been buying these from the PDs at later dates, do we even care anymore about the auction stats. It's basically the Fed in there with PDs buying initially on their behalf anyways.
well put. these days the fed is the sole bidder in equities, govies and mortgages. there's no difference between the centrally planned economy in China and the US, is it?
The one month (28 day) auctioned this morning had a BTC over 6 at %0.00.
Does the Fed also buy back from foreign central banks? Or, is the real story here that furriners no longer covet our debt?
How many more of those auctions coming up?forgot all about them and went long right at the top on Thu and Fr,want to average a little(lol),but I have to know how many more coming up.I guess the PDs had to pick up the indirect,and hence the sell off. So actually TG can't pick up the phone and curse the hell out of the traders.
um... dozens? hundreds?? thousands???
what did u get long????
Check the schedule here:
http://www.treas.gov/offices/domestic-finance/debt-management/auctions/a...
Umm,few of the not so lucky. metropcs,wnr,aib,gme,figured they were not very far from their Mar lows. Of course that doesn't mean nothing. But should have resorted to the pair trade,but somehow shorting has always worked bad for me(lol)
We have a solution for Mr Dimon: You and your peers sign a binding contract with the American people stating that no more tax support will be accepted or sought after. And then the public should shut up,and you go back to paying up whatever you wish to your very hard working employees. So this is the question?Are you and your friends in GS,C,BAC,WFC,and other banx/IBs,willing to state catagorically,in front of congress,and sign the proper legal documents,that neither you,or any following CEO after you,will accept any support from tax payers,covertly or overtly(meaning through the congress or the FED),And that the personale fortune of you,and any other trader would be sought after in case you used customers deposits in risky trading activities and lost them,and the following documents would enforcible in a court of law?. May be ZH could even help in the design of such legal papers...
Good idea. Hey Dimon, do you feel lucky? Well, do ya, punk?
Ruby
Just in time to kill off all the fellows who held steepeners and tens of thousands of soon-to-expire TBT calls purchased over the last week, right before what was shaping to be a failed 30-year auction. Crafty bastards. This kind of carnage in long duration t-bonds doesn't happen often.
Seriously, who in the right mind would actually purchase a 30-year T-bond at a 4.6% yield?
Assuming reality sets in and the globe
has a few years coming in the penalty box,
the 30 year bond may be a decent "rent",
relative to equities and commodities
facing a new normal. The presumption that
central bankers have the firepower to
whip global deleveraging and
deflation is erroneous.
I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. -- Thomas Jefferson