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$69 Billion In 3,10,30 Year Treasury Issuance On Deck

Tyler Durden's picture




 

Details of the latest offering of the 3-10-30s have been released. Between July 12 and 14, the US Treasury will auction off $69 billion of 3, 10 and 30 Year bonds.

  • $35 billion in 3 Year Bonds on July 12 (link)
  • $21 billion in 10 Year Bonds (reopening) on July 13 (link)
  • $13 billion in 30 Year Bonds (reopening) on July 14 (link)

We anticipate there will be no glitches in the take down of this latest total, which amounts to about 33% of the average recent monthly deficit, as "direct bidders" continue to increase their participation. These auction will be promptly followed by another 2,5,7 offering as there are hundreds of billions in budget shortfalls that can only be funded thru endless debt issuance.

 

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Thu, 07/08/2010 - 13:11 | 458578 jkruffin
jkruffin's picture

Anyone notice yesterday how the 28 day and 56 day bills went off at the exact same yields?  No way the bond market is being fixed is there?  LOL

Thu, 07/08/2010 - 13:16 | 458594 HelluvaEngineer
HelluvaEngineer's picture

Isn't it all just rounding error at this point anyway?

Thu, 07/08/2010 - 13:15 | 458590 fuu
fuu's picture

10 Year TIPS sold, RALLY ON!

Thu, 07/08/2010 - 13:25 | 458620 docj
docj's picture

We anticipate there will be no glitches in the take down of this latest total

Bingo - they will go off entirely without a hitch.  Probably even with even lower yields.

Thu, 07/08/2010 - 13:27 | 458629 lsbumblebee
lsbumblebee's picture

I.O.U. times infinity squared.

Thu, 07/08/2010 - 13:36 | 458642 RicktheDick
RicktheDick's picture

Can anyone think of another scenario where an entity can issue debt at will, yet still find favorable funding rates? If were to apply the same methodology to the US government that you do to corporate borrowers, you would laugh at the idea of lending money to an institution with that kind of capital structure.  

Thu, 07/08/2010 - 13:37 | 458645 John Law
John Law's picture

This is after issuing $133B this week. $121B in bills and $12B in Tips

And so much for Timmay increasing the maturity rate of the debt:

http://treasuryauctionwatch.blogspot.com/2010/07/treasury-auctions-from-...

Thu, 07/08/2010 - 16:27 | 459104 Mark Beck
Mark Beck's picture

From the link "noticeable increase in short-term bill issuance" since January.

The issuance numbers are just incredible, and to think that the low end churn will just keep increasing for another 10 years?

The definition of unsustainable.

Mark Beck

Thu, 07/08/2010 - 13:45 | 458657 SheepDog-One
SheepDog-One's picture

These weekly bond auctions are getting ridiculous, its like Tyrone Biggums going around the neighborhood begging for more crack money!

Thu, 07/08/2010 - 14:03 | 458686 jkruffin
jkruffin's picture

13.2 Trillion in Debt  and counting with 3rd largest single day debt increase

http://www.washingtontimes.com/news/2010/jul/7/us-marks-3rd-largest-sing...

Thu, 07/08/2010 - 14:18 | 458712 Shameful
Shameful's picture

Another week another view into the Abyss.  Thank God the worlds appetite for USA debt appears to be infinite!

Thu, 07/08/2010 - 14:18 | 458714 trav7777
trav7777's picture

Huh?  Those who are not familiar with exponential math are always surprised that things seem to be getting bigger!

As the debt compounds, geometric increases in either frequency or quantity (or both) are a mathematical certainty.

Thu, 07/08/2010 - 14:22 | 458722 Shameful
Shameful's picture

Anyone can see that just looking at the historical US debt chart.  It only accelerates up, ever gaining momentum.  Even if there was a will to stop or slow it, who do you stop a run away fright train?  The magic of compounding interest and the gov spending someone else's money.  Your right, short of a total miracle (where are you cheap fusion?), math dictates where we are heading.

Thu, 07/08/2010 - 14:40 | 458769 Smu the Wonderhorse
Smu the Wonderhorse's picture

I've asked it before and I'll ask it again: who buys this stuff?  If it is the central banks acting through proxies, who are the proxies?  Is there a list somewhere?  Tyler, help me out, man!

Thu, 07/08/2010 - 14:44 | 458776 HedgingInfinite...
HedgingInfiniteRiskIsNotPossible's picture

Debt is good, right?

Wait, what planet am I on right now?

Thu, 08/19/2010 - 11:15 | 530419 herry
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