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$42 Billion 2 Year Auction Closes At 0.769% High Yield, 2.93 Bid To Cover Lowest Since December 2009
- $42 Billion 2 Years close at 0.769% high yield (91.01% allotted), 0.762% expected, 1.024% previous, 0.989% one year average
- Bid-To-Cover comes in at2.93x, lowest since December 2009; prior came in at 3.03x, 3.08 one year average; with stock markets collapsing, no more need for PDs to overbid
- Indirect Bidders: 36.22%, 31.04% previous, 43.23% one year average
- Direct Bidders: 15.18%, 21.41% previous, 11.88% one year average
- Primary Dealer take down 23.06%
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Wouldn't another 20% drop in equities solve that problem?
And isn't the bond market larger than the stock market by an order or two of magnitude? So at some point, scaring money out of stocks won't be enough. . .
and yet, as no one wants our bonds, JPM waves its guiding hand over the gold and silver markets,,,,, keeping gold under 1200 and silver under 17.75 for the close....
so they don't get hung by their shorts.......
and what's the CTFC doing about this blatant manipualtion?
Nothing. .. there's some serious porn on in the duplicating department (yeah, they still have one of those) and they're "busy".....
+1000
Very curious to watch the action in gold the rest of the week...
America will watch their 401(k)s decline in value on a properly labeled PPV show called 401(k) smackdown.
It will feature WWF commentators and Simon Cowell will judge the performance.
The show will end up selling so well that it will turn into a weekly feature broadcast in 200 countries reaching 1 Billion homes worldwide.
Cramer will also recap every episode with pump literature and BSNL skits that bolster our confidence in the next bull market the entire way down.
Remember the 1987 Schwarzenegger movie "The Running Man"?
"Los Angeles in the year 2017 has become a police state in the wake of the global economy's total collapse. All forms of entertainment are government controlled, and the most popular show on television is an elaborate game show in which convicted criminals are given a chance to escape by running through a gauntlet of brutal killers known as "Stalkers." Anyone who survives is given their freedom and a condominium in Hawaii."
Isn't hilarious that it's actually going to come true 7 years earlier than thought and Schwarzenegger is actually going to be the Governor of the State when it actually happens? How crazy is that?
That movie had the whole reality TV thing nailed 20 years early.
Yep -- and featured another governor, Jesse Ventura, as one of the Stalkers if I totally recall correctly.
Life imitating art once again.
We need to come up with the ZH top 10 distopian films/books that came closest to predicting our future. Running Man, Brazil, 1984, Mad Max, The Road?
Haha! The comments on this board are all the entertainment I need!
Idiocracy...
Seconded!
"Infinite Jest" with the Gulf of Mexico subbing for the "Great Concavity" where America launches all its garbage with gigantic catapults.. In the novel the GC is Quebec... Interesting tid bit..I just looked this up.. David Foster Wallace hung himself on September 12th 2008... Maybe he had just a bit too much Lehman Brothers in his portfolio.. (my apologies for the gallows humor...I suspect DFW wouldn't mind).
2001: A Space Odyssey, except without the space part.
+1
TD wrote a terrific piece back on 12/31/09, accurately predicting that the Fed would have to "manage a market crash" in 2010 in order to find funding for the $2.1T in refunding and borrowing. Prescient.
http://www.istockanalyst.com/article/viewarticle/articleid/3739425
Push index futures down 2% overnight on zero volume. Shut down the NYSE computers at the open to block any real sell orders from going off. Scared money runs to the weekly Treasury auction as a safe haven, as soon as the auction is over, light up the HFT algos and lift the Dow to a green close.
Rinse and repeat.... see you next Tuesday !
"Banking was conceived in iniquity and born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take away that power, and all the great fortunes like mine will disappear — as they ought to in order to make this a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, then let them continue to create deposits.”
-Sir Josiah Stamp (1880-1941), one time governor of the Bank of England, in his Commencement Address at the University of Texas in 1927. Reportedly he was the second wealthiest individual in Britain.
Mobilis In Mobili - Nemo
I wonder what the Treasury is doing with all those EUROs....
Playing quarters and other drinking games.
Posted this earlier...
The only way to recover from this low of #s is to start a war.
http://www.rasmussenreports.com/public_content/politics/obama_administra...
Are you taking bets? I will go with June 12th, with a strike on Iran's electrical grid.
Or the Ole Gulf of Tonkin Draw Play
Torpedo a South Korean boat, blame North Korea and kick their ass...
It is much safer than the oligarchy diverting attention with Iranians... It did not come out so well the last time we dicked with Tehran...
It is the TonKin' drawplay! Hmmm...so then we will be fighting three wars that are going no where; burning cash is an "art".
To add: Nobel prize indeedily doo.
shortly after Tisha B'av (July 20)
Stealth bomber fully operation under a new moon.
I bet it would decrease his approval rating.
War weariness has set in.
I'm gonna keep saying it... after November, I'll bet that Congress impeaches him to score some public applause. It won't do much, of course, but it'll make for great TV.
The dude's approval ratings are already in Busch Country. Low 40s in likely voters.
I find the whole thing awesome just because of how stupid his former voting base was. He may very well believe now he can turn on his campaign contributors and give them a public flogging. He'll find out who owns who.
I wondered during the elections if perhaps his birth cert might find its way to daylight if/when it was needed. Either that or Rezko etc. becomes his Watergate.
Turd Ferguson is spot on (as is the piece he referenced). Obama and crew will manage this down. Getting long mid-to-late summer is key and they'll manage it back up leading into mid-terms.
And the history books will spin him as the second coming of Franklin D. Roosevelt. Disgusting.
Not likely
I hope you are right.
Only thing I did in Treasury's was pile in on the 4 week bills today, and set up to keep rolling them over. Hell the 2 yr rates will be what the 4wk Bill is soon, so I said why buy anything out over 1 month. At least you get .155% for a month vs the 2yr at .79% divide that 2yr up and its worse return than monthly bills, and might as well be negative LOL.
Just sitting in the shadows waiting for hyperinflation to grab hold and send rates to the moon, then once the rates peak, I will be ready to load the truck with Timmy. Then and only then will 2y-30yr UST's be worth buying vs the risk invloved.
My plan too. Only not sure if I'll buy the treasuries issued by the Socialist States of the North, or of the Free Southern States.
Amen, the monthly rate on the 2yr UST auction today is a mere .032%, now who would want to buy that crap? You can do better hiring a thug and loan sharking. The only thing paying worse interest than that are banks. Roll the 4wk bills until better comes. Easy peezy.
A new anxiety: Declining Bid to Cover right in the clutch when fear should be at a max and the minnows are fleeing equities. Markets all over the world are looking rather unshowered, smelly and badly shaved this morning.
Which means monetization to pick up the slack. We're just plum out of frightened 401k holders aged over 40. They're all in Treasuries already, unwittingly funding the debt-spiral.
I'm watching the high yield market take another hit today. If that starts to snowball I will take it as a proxy for serious, serious funding problems in the short term credit markets. It will also upset the post 1980s junk bond-debt cycle as we knew it. Not pretty.
well, well, well....JPM could not retire the bulk of the silver calls....
get ready for some serious action there.........
waiting for CTFC to invalidate last ten minutes of trading....too many peasants won.
That was wicked!
Time to buy SI calls?
Flight to quality.
Right. On. Cue.
Santelli called it right: a B-
Not as impressive as it should have been considering the massive mess we have in equity and credit markets.
Notice the media now using the same terms as they once used in 2008-2009 that have been blacklisted by the FED? Plummet, Sink, Crash, Dive, etc... you know its getting ugly.