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Treasury To Sell $73 Billion Of Short-Term Bills Over Next Few Days
The US Treasury is filling the Primary Dealer demand for ultra-short term, zero interest Bills. Today it announced it would auction off:
- $31 Billion in 4 week Bills, maturing April 29
- $25 Billion in 56-Day Cash Management Bills, maturing May 27
- $17 Billion in 18-Day Cash Management Bills, maturing April 19
While this is the 6th 56-Day auction since the SFP reopening in February 24, the 18-Day is a new addition to plug the endless PD demand for cheap money which can be used for other much more lucrative purposes, such as buying equities for example. We expect all these Bills will come out at a yield of about 0.1% as banks do all they can do take advantage of ZIRP for as long as they can.
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Wow! Nicely coincides with EO Q1, ie, March 31, 2010. Rally On. LOL.
LOL
You didn't think QE would just END did you? Gracious me, what would give anyone a silly idea like that? It just morphs into another animal, mineral or monster.
Oh, I know where you picked up such nonsense. The Fed said so.
Come on piggies come get some of that slop while it's still warm.
Squeal.
now that made me laugh!
What are these, just cash management bills? Who's stupid enough to buy this,
I see it as this visualization of a huge edifice of a bank (FED) but behind it attached where the teller window is it's a trailer, and that's the whole thing. Either that or a dried out gourd, nothing but air inside beyond the crunchy outer shell.
When do they come out with the multi-hour bonds 2,3,4,8 hrs. Maybe next yr.
They're going to have to make the doors wider all along Wall street.
Why call it a maturation date when it's 0% interest? Why not "the date you get it back"?
OH this game of musical chairs -- err short-term roll-over bills is SO MUCH FUN WHEEEEE!!!
Hey the music stopped?????
What a stupid game.
You can cash out, just don't try cashing out, because you can never convert your frequent player points into cash at any point in the future whatsoever.
That's basically what they've done, isn't it?
They're going to just have that paper with the huge numbers on it be a parallel form of storage for the paper with the smaller numbers on it, with the ability to convert it in to any maturity shorter than a year.
Remains to be seen how long this will stave off an interest rates decline in the discount rate.
The policy rate is still set much higher than the three-month treasury rate:
http://finance.yahoo.com/bonds;_ylt=Aqi6gUb8b6YnRT5i0_E1MJe7YWsA;_ylu=X3...
A decline of the $IRX into the negative will force a negative interest rate policy, so this move can be seen to be a massive effort at staving off the inevitable liquidity trap, though theoretically no amount of liquidity is creating any growth in the U.S.
The $IRX saw a high around .16%, and has been declining, so it follows that the powers that be will use any method available to avoid the onset of negative interest rates. The effort this time is massive, btw.
stockcharts.com $IRX chart (may require subscription to view - bear in mind 1.0 on this chart is actually .10)
http://stockcharts.com/h-sc/ui?s=$IRX&p=D&b=5&g=0&id=p95828341396&a=191209925&listNum=2&listNum=2
Edit:
Treasury To Sell $73 Billion Of Short-Term Bills Over Next Few Days...[To Themselves]
Gotta love the reach around after the pounding delivered by this past weeks 2yr auction.. as "We desire to move the yield curve out" joins "We support a strong dollar policy" and "The sub-prime crisis is contained" in our modern lexicon as "financial & economic leadership" joins "political leadership" as the oxymoron's of our age.
Gut feeling, we have reached the TIPPING POINT.
VAT TAX immenent, still won't be close enough, and no one in their RIGHT minds would buy Treasuries, or Bonds from US.
Look for a real fast legislative bill,passed locking up all IRS's, and 401k's, and getting it dumped into the Slew of Despond.
Move it,or Lose it.
Also, the Feds SNAGGED another 9?/90 million acres of the Western USA,coincedentally the lands where 90% of our National Resources are.
I feel, their ultimate way out of this is a Public Land sale, along with the properties they have taken control of...
It's SECURITIZATION of Debt.
I'm almost certain now that the only way I'll see a return of my FICA payments over the past 30 years will be by seizure of public lands.
I already have my sections picked out.
18 day? what are they called a premenstrual bond?pretty soon they will be down to hours. Just print the cash for crying out loud
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