The $24 billion 10 Year auction just closed at a 3.548% high yield with a 2.96 Bid To Cover. So far so good, except that the Direct Bid is now as credible as the market once again is: at 25% (an all time record) there is no way that the Federal Reserve is not directly or indirectly interfering with auction take downs. Whether it is via Chinese participation and behind the scenes arrangements or through London-based shadow-Fed clearing organizations, it doesn't matter. Treasury auctions are now just the same ridiculous spectacle of central bank interference that stocks are. All we can say is stay away from the markets: both stock and bonds. Our hope that the DOJ will end JPM's manipulation of the gold market is the only reason why we are still not endorsing profit taking in gold and silver and getting the hell out of dodge.
Direct Bidder participation: