Treasury Redeems $144 Billion In Bills In First Four Days Of May

Tyler Durden's picture

A few days ago we reported, quite stunned, that the US Treasury had redeemed nearly $600 billion in Bills in the month of April. Alas, the side-effects of an massively short-maturity heavy bond curve will be here to haunts us for a long time: according to today's DTS, in the first 4 business days of May alone, the UST has redeemed $144 billion in Bills. Annualized this number is surely something that even Richard Feynman would not joke about. We have gotten to the point where the roll issue is not a monthly concern, but is becoming a weekly funding threat, and even daily. Of course, as we speculated in December, what better way to raise demand for Treasuries than to stage an equity selloff. Well, we got our selloff, and the 10 Year was trading in the lower 3% range today. However, the risk now is how the sovereign fire will spread through the periphery and into the core. Already, we are seeing that CDS traders are massively betting on a collapse of the UK as the next bastion of sovereign spending lunacy. And when the UK goes, Germany is next, shortly to be followed by Japan and the US. At that point the only buyer of US debt will be the US itself. Which will lead to the final outcome of massive consumer deflation as economic collapse finally strikes home, coupled with asset price hyperinflation, as a gallon of oil hits $10 (and helping the Dow hit 36,000). And as this is not an equilibrium state, the outcome will be, as it always is in these situations, war. Hopefully the US is good as it historically has been at finding its "deserving" opponent, WMDs aside. Otherwise, things may be a little rough for the great declining American civilization after the next 5 years.

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sysin3's picture

first 4 business days of April should probably be edited to "May".  Or I'm an idiot.  Or both.

Tyler Durden's picture

fixed on the former. not sure about the latter.

SilverIsKing's picture

IS, have you bought any physical gold or silver yet?

Implicit simplicit's picture

I am seriously looking into it. 1st things 1st. This week I decided to start a business and personal accounts at a credit union.

 I changed my phone and got an unlisted number. Next I will stiff Citibank for jacking my rate even though I never missed a payment (they did this after the crash), and refusing to lower more than 1 pt. at a time. They basically told me they don't negotiate until your delinquent.(so be it) Well, that part comes easy. I used to be a juvenile delinquent.

Next, I will buy physical gold and silver. Like an idiot I bought $100 worth of US gold coins and realized that wasn't a good idea, som I started spending them.

"I'm an air conditioned gypsy, watch the police and the tax man miss me"

Janice's picture

NO!  Get another credit card, purchase gold & silver...then default.  Beats them at their own game.

Implicit simplicit's picture

I am only really pissed off at Citi on a personal personal level, while I am pissed at all the big banks in general; maybe cap I too, we'll see.

fuu's picture

walstreetpro2 is that you?

Janice's picture

Nada ~ I need no alias, never have. 

"I am, what I am, what I am".  Popeye

i.knoknot's picture

he's not saying "yam what i am" ?

all these years...

Janice's picture

I'm a southerner...we have sweet potatoes, not yams.  Maybe I should say sweet taters.

IBelieveInMagic's picture

F@#k, not one comment on how to save our system and ourselves!! Are you saying we are done and there is no solution? Blood thirsty f@#kers!

Rider's picture

Amen, thats the way to go.

Worry, do not. All credit scores will be reset in 2012 when no "worthy" creditors are left. Just like it happened after other crisis.

chumbawamba's picture

Good job, brother.  Like the other guy said, get another card, max it out on physical gold and silver purchases, then just throw it away and wait for them to come asking about you.

When they come calling you out to play, get your foo on here:

It'll take at least 6 months for them to catch up to you at this point, longer if the economy deteriorates rapidly (i.e. longer to never...the trick is to outlast them).

I am Chumbawamba.

Almost Solvent's picture

Steal from them before they rape you. Self defense!

Janice's picture


I am not a guy.....not yet.  Chastity Bono is now there may be hope...but I no like getting what he/she gets....I prefer the outie, not the innie. 

Implicit simplicit's picture

Seriously, I'm hoping gold comes in some when the market has its next big down day. Probably won't happen for a bit, but ya never know.

Have you been collecting for a while?

SilverIsKing's picture

I started buying gold when it was just below $800 and silver in the $10-$13 range.

Now that the cat's sort of out of the bag, i.e. currencies are blowing up and more and more people are catching on, I'm trying to figure out the catalyst that will bring the price of gold down and it's hard to come up with something.  The deleveraging process may do it when something big fails and everything comes crashing down but you'll have to act quickly in that event.  I don't think the deflation argument or fake IMF sales will do the trick.  The world is burning and there's no stopping it.

Good luck.

Bananamerican's picture

"Otherwise, things may be a little rough for the great declining American civilization"



Henry Chinaski's picture

Gold up 1.3±%, GLD down 0.2±% today.

tmosley's picture

What is your source on gold price?

RockyRacoon's picture

That does NOT mean you should buy gold/silver there.  It is a place to start pricing the market.

This (above) will tell you prices in the small lot market.

1TAAT's picture

Use EBAY for price, but becareful. ALot of fake coins on there. Don't buy anything from China.

tmosley's picture

The thing about eBay is that they have systematic price distortions that have been created by the cashback offer.  I'm not sure that you can use ebay gold prices as a market indicator for that reason.

I have been using kitco for spot prices for years, and yes, you are correct, never order from them because they are awful.  My first experience with gold was buying in one of their gold pools, some years ago, before I knew the dangers.  Made quite a bit of money, but now I'm all about physical accumulation.

Hansel's picture

US gold coin sales surge as investors flee risk - Reuters

...On Friday, the U.S. Mint said sales of the most popular American Eagle one-ounce gold coins totaled 41,500 ounces so far in the first week of May, compared to 60,500 ounces in the entire month of April.


Fraud-Esq's picture

HOW does the UK's debt trouble stay out of US news. It's always Spain, Portugal, Greece and Italy. I am amazed the UK gets little play.

AnAnonymous's picture

Eurozone is bigger on consumption. Eurozone falling apart, more space freed for last man standing.

Fraud-Esq's picture

I would never call ZH the news. "The news" is a pejorative for me. ZH is my secret source 

i.knoknot's picture

 call it my "financial porn" site.

i'm sure the Wall Street Puritans just can't stand the filth found on this site :^)


faustian bargain's picture

I can't believe I heard him say that on network TV.

Alienated Serf's picture

whoa. did i just see a network news anchor describing something that resembled the truth on network tv.

Hughe Crapper's picture

Yep, you figured it all out TD. Nice summary.

When the SHTF, don't say Tyler didn't warn you! ;)

ps: Just imagine, if the US is first before Japan. Epic thought...

Janice's picture

I'm not sure that the typical American has the stomach for warfare ...... unless the cable t.v. gets cut off. 

Rainman's picture that's funny, J !! Rabbit ears and 5 channels might rescue millions of minds.

Amish Hacker's picture

The eyes of the world are on America, and the eyes of America are watching television...

Al Huxley's picture

But a good part of American income seems to be being spent on guns and ammo (more than usual).

cossack55's picture

We were better off with three.  Only things anyone watched were Bananza, Lucy and real Disney.

A Nanny Moose's picture

Twilight Zone....but we don't need TV for that anymore. Life imitates art.

Cow's picture

It wouldn't interrupt American Idol, would it?

I don't mind a war as long as it's not too inconvenient.

Bananamerican's picture

"I'm not sure that the typical American has the stomach for warfare ...... "

why do you think we inported all those mexicans?

They some crazy head-chopping, acid dippin', 3rd world mofo's

DoChenRollingBearing's picture

Gordon_Gecko issued the last best alert to buy gold here at ZH a few weeks ago.

I think this WILL become clear to even the MSM, .gov, our neighbors and all others who have no clue when the next Greece happens.

Time to get prepared.  Looks like a catastrophic disintegration approaches.  Many will be hurt and full of woe. 

Get busy!

Implicit simplicit's picture

 It will be like I, Robot. The algos will start the all ending war. The bots will deduce that mankind will destroy itself, and them, if they don't take over the world, and destroy man. (and woman)




Argos's picture

Everyone is forgetting about the game changing Katla volcano. 

cossack55's picture

I recommend a preemptive nuclear strike on the volcano, after we nuke the oil blowhole, of course.

Al Huxley's picture

Media has the attention span of a small, yappy dog.  General public maybe as well, I'm not sure.  If Katla erupts, there will be some very serious problems to deal with globally, and nobody is ready.

snowball777's picture

Think of the Witchy volcano as a hedge against global warming.