Treasury Sells $29 Billion In Bonds, Bringing Total Settled US Debt To 14.311 Trillion, More Than The Debt Ceiling

Tyler Durden's picture

First, the irrelevant news:

Today's $29 billion 7 Year auction just closed at a yield of 2.895%, the highest since April 2010, just the time when QE1 was ending and everyone was certain there would be no follow through monetization. The Bid To Cover was 2.79, weaker compared to recent auctions, and 2 bps wider of the When Issued, implying the auction was not all that hot. Directs took down 8.76%, in line with the last year average, Indirects accounts for 49.41%, or the lowest foreign take down since November 2010, while PDs bought 41.83% of the auction. Altogether a weak auction but it's not like the PDs would let it fail especially not with QB9 becoming the next "flip back to the Fed" bond for the PD community.

Next, the relevant news:

Now bear with us for a second: the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week's auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit - break out the Champagne! Granted there is a buffer of $52.2 billion between the total debt and the debt actually subject to the ceiling, meaning that America is not in default, yet. Therefore, the total debt subject to the limit assuming full settlement right now is $14,258,341,662,931. Which means the US is now $35.7 billion away from a bona fide breach of the debt ceiling. Yes, there are some caveats, and it is possible that there will be an accelerated redemption of bills over the next few days, pushing the total debt slightly lower, but readers get the idea. Complicating things, the SFP unwind is complete with just $5 billion in 56 Day Cash Management Bills on the books, and no longer a buffer of debt ceiling extension.

Which brings up the question: with a government shut down looming any minute, shouldn't Congress be tackling the issue of what happens when the US enter technical default some time in the second week of April when the next battery of approximately $67 billion in new bonds are issued, which also happens to be just as tax rebate (and thus outflow) season peaks?


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Ray1968's picture

Why am I so addicted to Zerohedge? I better get to work or I'll join the ranks of the unemployed. Damn.

Like anyone else will report the breaching of the debt ceiling.....  it be ignored by the media AND the government.

the mad hatter's picture

Shouldn't they drop a giant glass ball full of newly issued paper to commemorate the occasion?

Cash_is_Trash's picture

Whoop out the banner:


Harlequin001's picture

that's a credit card bust isn't it?

Eally Ucked's picture

No, they sold it to UK, at the same time UK sold the same amount to US. In 2 year time they will notice that they don't owe anything to each other and cancel bonds. Meanwhile they have freshly printed $$$$$ on both sides and it won't be called QE-n. 

Anonymouse's picture

Repo 105!  Paging Dr. Repo 105

InconvenientCounterParty's picture

So here's a poll:

By what % would the goss public debt grow if you added in the shadow debt from all the classified national security budget?

a) 0%

b) < 25%

c) < 50%

d) < 100%

e) other

Hard1's picture

No credit card bust if your bank doesn't call you to tell you that you are over your limit, you can go on spending, the card...still works....seems like it will work forever!!!! and there are no fees for overdrawing the line!!!!  I guess the whole Debt ceiling is just a mirage, the sky is the limit. To infinity and beyond.  Oh and bullish signal for everything by the way.


Veni vidi printit.  (Benius Bernaesar c, 2011)

Dr. Richard Head's picture

Check kitting by the pros.  Gotta love it.

Harlequin001's picture

and if that doesn't work you can always default.


Bullish... definately...

tahoebumsmith's picture

We are fast approaching 1932...Head and shoulders bitchez...look out below

I Am The Unknown Comic's picture

Hard1 you are looking at this with a glass half empty perspective.  Just wait for Cramer and some "experts" to come on CNBC and tell us how this is "all good" for bank stocks, and therefore the overall markets.  Surely there are over-limit penalties because all of us proletarians have overdraft fees so the big guys have to have them too (snark, snort...just busted myself a nut on that one!). 

Just think of the overdraft fees on 16 + BILLION dollars!  WHOA!  Since bank stocks are supposed to lead us out of the recession (that officially doesn't exist), then we are in for happy, happy, HAPPY times!  It's time to BUY BUY BUY bank stocks!  Oh fuck, where is RoboTrader when you need him?  I want a distorted chart showing us all how we should have bought bank stocks yesterday morning! 

SDRII's picture

Nothing American ingenuity can’t overcome

long juan silver's picture

Marvin Gay said that this morning! I mean Barak Hussien Obama.

In Fed We Trust's picture

It's time to pass a law that moves the decimal point on the debt 4 places to the left. Then in 2050, we can move it back to it's original spot.!

What does The Constitution and Obama's birth certificate have in common?

Quinvarius's picture

The Fed will be shooting Andrew Jackson's corpse out of a cannon on the 4th of July to commemorate the event.

Shameful's picture

Really?  Last I heard they had it on display in the Mariner Eccles building.  Rumor has it the display has him in a rather lewd position, with Wilson mounting him from behind...

Terminus C's picture

So sad but true.

This song wraps up what I feel about the current situation.

Harlequin001's picture

so, not using his ass as a dart board then....

sunkeye's picture

yippeeeee cue guy lombardo ...

'should old debtlimits be forgot ... and never brought to mind ....

NidStyles's picture

You work? I gave that up a long time ago. Tired of paying people to spend more of my money for me than I can reasonably earn in a lifetime.

Harlequin001's picture

now there's a big difference between working and paying taxes 'so that other people can spend more of my money for me than I can reasonably earn in a lifetime'...

good point though.

I don't mind the work but the last bit, hmmm, save that for the sheeple...

Did you know that sheeple was in spellchecker?


Cdad's picture

Like anyone else will report the breaching of the debt ceiling.....  it be ignored by the media AND the government.


Not so much ignored as...replaced...replaced with stories about burritos and cute yoga outfits.  You must keep in mind that the MSM is much less of a news dissemination group and much more of a...shepherd.

Now move along you little sheep you.  If you are really good and take your crazy pills, while selling your silver and gold and buying Netflix, you might be able to join us all at the unicorn ranch this afternoon.

I understand that Bob zerocred Pisani is very EXCITED about the trip.


Triggernometry's picture

Its not a debt ceiling, but a debt event horizon. And just like any other black hole, if you stand outside the event horizon and throw something in, it will appear to fall forever, seriously. The object, however is quickly "spaghettified" and loses all previous form and characteristics.

Yes, I know you can't actually stand outside a black hole, but this result is acknowledged by your nearest physics professor.

As for what it means for the FED that the debt event horizon has been breached- hopefully it will now fall forever.

ElvisDog's picture

It's ignored because it's an artificial barrier. For a government that ignores laws when it suits its purpose, the debt ceiling is no ceiling at all.

alien-IQ's picture

Debt Ceiling Breach = Broke through resistance.

It doesn't get much more bullish than that.

Rally on now BIG TIME!

Racer's picture

Exactly, just goes to show how irrelevant and how casually they treat the debt target

Robot Traders Mom's picture

No rally in Apple today. Down over $2 today alone, getting the ever-living-shit kicked out of it. I actually feel bad for anyone that is going to ride this thing down to my personal price target of $6.37. Silver and gold doing well though, as usual.

If you ask Robot Gaylord nice enough, he'll probably copy and paste a chart from yahoo finance showing the destruction in AAPL today.

Sudden Debt's picture


Debt Ceiling breached means =


Obama's got some explaining to do to congress :)


Obama... first black president and first president to breach the debt ceiling TWICE! in 1 office turn!

ShankyS's picture

Careful - they will bring out the R card on your ass.

tinsmith's picture

Responsible governance & fiscal policy needed?

Rape of future generations?

Reprehensible gooberment behavior?

OH!  Racist!  As in someone who enjoys NASCAR.  Got it.

ShouldveLeftHer's picture

NIGGA RICH, NIGGA!!!!!!!!!!! Obama bought ever black family a carton of Newports and paid thier mortgages with this latest bout of "Treasury" Bond sales. Next, reparations! Then, Cash for Rusty Impala Lowriders 2!!!!! Wacky Waving Inflatible Arm Flailing Tube Man!!!!

Pez's picture

Ceilings? We don't need no stink'n ceilings!

Dr. Engali's picture

Maybe we need to announce another six billion off budget the deficit.

Yield2Greatness's picture

Now watch what happens.  -= NOTHING =-

A big fat nothing.  This will be admission that the money out there is meaningless, so keep the printing presses going and spend spend spend, while the people like the look and touch of ink on linen.

NotApplicable's picture

That is, unless they want to break fedgov and blame it on the Tea Party reps, clearing the way for QE3...

Otherwise, I expect a massive change in what debt is subject to the statutory limit. Basically they will cherry-pick certain debts as being TBTF.

Yield2Greatness's picture

IMO, the teaparty is nothing but opportunist, looking to ride the band wagon, of pretended outrage over our fiscal irresponsibility.  It will be with the teaparty, business as usual, beyond the "reelect me" pandering.

Dr. No's picture

When driving in your car, what is the speed limit?  It's 55 only if the police decide to do something.  Not until you start getting around 100+ MPH does the REAL speedlimit start to be reached (where there are real consequences).  Today the police let it slide.  But we are continuing to gain speed.

Pez's picture if our economy were a car. We'd be going reverse.

DonnieD's picture

They ignore the constitution so I don't see the debt ceiling as a big deal.

alien-IQ's picture

RE: the Constitution .

"it's just a goddamned piece of paper"
George W. Bush

any questions?

Sudden Debt's picture

bill of rights?


5$ and it's yours!


NotApplicable's picture

Are there any left that have retained their value?

Cash_is_Trash's picture

You still have the right to remain silent.

alien-IQ's picture

actually, now if you remain silent that just ups the ante since it implies you are hiding something bigger thus placing you under the dictates of the patriot act and branded a "terrorist suspect" and therefore you have no rights...are shipped to gitmo...tortured...and worst of get to miss the market rally your arrest created by taking another dangerous terrorist off the streets and making Amerika safer again.

Harlequin001's picture

cynic, they'd never do that...