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Record 25% Direct Bidder Take Down Carries 10 Year Auction

Tyler Durden's picture





 

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:

 

 


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Wed, 05/12/2010 - 13:18 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Clearly, the treasury buyers agree with me, at least in syntax if not contextual meaning, when I say:

Disintermediation, bitches!!!!!

Wed, 05/12/2010 - 13:17 | Link to Comment PaperWillBurn
PaperWillBurn's picture

"is the only reason why we are still not endorsing profit taking in gold and silver and getting the hell out of dodge."

 

Profit taking into what? Dollars? Canned goods?

 

Gold is it

Wed, 05/12/2010 - 13:27 | Link to Comment SheepDog-One
SheepDog-One's picture

May I suggest a nice German assault rifle, such as the HK-91 with tons of ammo for it? Canned goods are heavy and quite easily acquired during bank and grocery store riots while all the zombies are pre-occupied.

Wed, 05/12/2010 - 13:38 | Link to Comment uno
uno's picture

Thank you SheepDog for that suggestion.  Never owned a gun, the time is getting near. 

Wed, 05/12/2010 - 14:12 | Link to Comment Tortfeasor
Tortfeasor's picture

This is a Goldman Sach way of acting.  Looting is stealing, plain and simple.  Stock up on canned goods and keep your own moral compass.

Wed, 05/12/2010 - 16:32 | Link to Comment ConfederateH
ConfederateH's picture

I have been buying army surplus bolt actions in good condition very cheep with bayonets and stocking up on ammo for them as well.  I figure that in a worst case these will be great barter items, and in a best case they will become collectibles...

Wed, 05/12/2010 - 13:18 | Link to Comment Turd Ferguson
Turd Ferguson's picture

MoASS!!!!!!!!!!!

Wed, 05/12/2010 - 13:18 | Link to Comment fuu
fuu's picture

I thought they announced a re-open of a previous 10 year yet this looks like a new 10 year. Is that a bait and switch, business as usual, or did I misread the post last week?

Wed, 05/12/2010 - 13:25 | Link to Comment SheepDog-One
SheepDog-One's picture

Theres got to be a total implosion imminent, all I see everywhere is flashing red lights and hearing air raid sirens, while the soothing dulcet voices of CNBC harlots tell me 'all is well, keep buying stawks'...WTF?

Wed, 05/12/2010 - 13:27 | Link to Comment bernorange
bernorange's picture

I think ZH's post about D-Day coming in 2015 (because fo the Fed's toxic balance sheet) may need to be revised.

Wed, 05/12/2010 - 13:29 | Link to Comment SheepDog-One
SheepDog-One's picture

I agree, any prognosticators timeline of impending doom and violent dislocation of longer than a week or so into the future is pure pie in the sky to me.

Wed, 05/12/2010 - 13:55 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

It's coming THIS year folks.

Wed, 05/12/2010 - 16:34 | Link to Comment Burnbright
Burnbright's picture

I wouldn't say that yet GG, I think any one with half a brain left that is paying attention knows its coming but to say that shit can't just get worse and continue to get worse under estimate just how out of touch most people are with everything.

People actually look at me crazy when I talk about gold, guns, budget deficits, sovereignty and how the government abuses peoples sovereign rights, or how money is printed and backed by nothing. I could go on.

This is simply a sign for those who are in the know to see, but those who aren't looking, I wonder if they ever will.

Wed, 05/12/2010 - 16:47 | Link to Comment faustian bargain
faustian bargain's picture

I just point people to articles on the web that pretty clearly--and as objectively as possible--illustrate the dire situation we're in, and let them draw their own conclusions. They don't want me preaching, and I don't really want to alienate anyone. I've done my part, the rest is up to them. If they don't want to do anything about it, it's their loss.

Wed, 05/12/2010 - 19:00 | Link to Comment Burnbright
Burnbright's picture

Well I am just waiting for supply to diminish. Then I'll be shouting from the roof tops. Once imports start dropping say hello hyperinflation!!!

Wed, 05/12/2010 - 13:33 | Link to Comment SheepDog-One
SheepDog-One's picture

Everyone wonders where the 'safe haven' is, may I suggest that in any collapse of a nation into rioting or far worse, the ones who do allright have invested well into their own means of self defense? All can be acquired easily with the right means, and the biggest fortunes have always been amassed during large upheaval.

Wed, 05/12/2010 - 21:35 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

http://www.thepowerhour.com/news/items_disappearfirst.htm

 

Everything on this list is at present easily obtainable.

Start at the beginning and work your way down.  Hell, most of the stuff you should have on hand any way.

 

I consider every extra day they keep it held together a gift.  It's one more day I get to prep and pretend everything is just fine.

Soon the days of 24/7 Code White living will be just a dream.

Wed, 05/12/2010 - 13:36 | Link to Comment SayTabserb
SayTabserb's picture

"Direct" hardly says it anymore.  Onanistic?  Could we substitute that word for the third category, so we have Primary Dealers, Indirects and Onanists?

Wed, 05/12/2010 - 13:41 | Link to Comment SayTabserb
SayTabserb's picture

By the way, wouldn't Chinese "behind the scenes" manipulations by the Fed show up in the more favorable category of "indirect" bids? Whereas with a London ruse...maybe it's time to resurrect the conspiracy theory that the real reason the M-3 metric was abandoned wasn't to save the 3 bucks a month that it cost to count it, but because M-3 takes into account Eurodollars, including those in British banks. So that's the easiest way to hide a Fed end-run.  It simultaneously lets the UK look more solvent while allowing Bernanke another shell game.

Wed, 05/12/2010 - 13:54 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

God-damn "Households"!

Wed, 05/12/2010 - 14:19 | Link to Comment SayTabserb
SayTabserb's picture

Is it physically possible even for that many coins to have found their way under that many sofa cushions?

Wed, 05/12/2010 - 13:55 | Link to Comment primefool
primefool's picture

Foreign Central Banks collectively reallocated about 10-15% of their reserves away from the Dollar to the Euro over the past 5 years or so. This is a lot of dough - 400Bil? Now they may be having second thoughts and moving back to the Dollar? If so - Euro wont stop at parity. And Treasury auctions will be very well bid for a few months.

Wed, 05/12/2010 - 16:36 | Link to Comment ConfederateH
ConfederateH's picture

Just like the Germans and Austrians, these CB's are not going to waste time going from Euro==>Dollar.  They will go straight from Euro==>Gold.

Wed, 05/12/2010 - 13:56 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

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.

Just buy physical and forget about "profit taking".

Wed, 05/12/2010 - 13:58 | Link to Comment Amish Hacker
Amish Hacker's picture

25% direct bidders? This seems like just another attempt to disguise market realities. Look around and try to find a market that isn't corrupted beyond anything you could have imagined just a few years ago. The whole point seems to be to *prevent* real price discovery everywhere, whether in gov't bonds, stocks, mortgage paper, currencies, silver, gold---TPTB simply can not afford for the truth to come out, or the "recognition moment" will have arrived, and it'll be game over for them.

The message from today's gold market is that gold is still real, honest money, and truth will have the last word.

Wed, 05/12/2010 - 16:37 | Link to Comment Burnbright
Burnbright's picture

Nail on head, it is all about avoiding price discovery. It is the same thing as saying the government is in control of the market, as they are in fact trying to distort prices to reflect the outcome that they want.

And the truth that is eventual is that the market is always bigger than they are.

Wed, 05/12/2010 - 14:04 | Link to Comment DaveyJones
DaveyJones's picture

"Our hope that the DOJ will end JPM's manipulation of the gold market"

is that a hope we can believe in, or a different kind?

Wed, 05/12/2010 - 14:30 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Can we now discard the "treasuries are a safe haven" argument to the dustbin?

Wed, 05/12/2010 - 15:32 | Link to Comment johngaltfla
johngaltfla's picture

THIS STORY, not the Euro, is why I think Gold continues its march north. Without the Nancy Drew/Hardy Boys mystery bidder(s) these auctions are implosions of epic proportioni.

Wed, 05/12/2010 - 16:51 | Link to Comment faustian bargain
faustian bargain's picture

I wonder if we'll ever get to 100% directs...I'm sure they'll figure out a way of modifying the report to disguise it.

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