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Weak 5 Year Auction Spooks Bonds, Big Tail To When Issued

Tyler Durden's picture




 

Today's $35 billion 5 Year auction closed surprisingly weak, pricing at a high yield of 2.149%, a huge tail as they were trading at 2.07% WI. The bond came at a 2.61 BTC, Indirects accounted for 35.6%, Directs for 6.2%, and the balance, or well over half, was soaked up by Primary Dealers, who had to make sure this auction was not a dud. As access to our Treasury database is limited those wanting to see the auction represented visually will have to take our word for it for just how ugly it was. We are confident the bond weakness will be misrepresented by the Kool Aid Krew as a very positive development for stocks.

 

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Tue, 12/28/2010 - 14:26 | 833826 Max Hunter
Max Hunter's picture

10 yr 3.45 bitchez!

Tue, 12/28/2010 - 17:54 | 834441 dlmaniac
dlmaniac's picture

Time to butcher another PIIG to divert the attention away, bitchez!!! Let's see who is the next: Spain, Italy, France, Belgium and ????

Tue, 12/28/2010 - 14:26 | 833827 Drag Racer
Drag Racer's picture

bad day for bonds. ECB, China, now this...

 

ION, Allstate sues BofA

http://www.bloomberg.com/news/2010-12-28/allstate-sues-countrywide-finan...

Tue, 12/28/2010 - 14:31 | 833844 Robot Traders Mom
Robot Traders Mom's picture

People are selling bonds to buy RIMM. My son's practice Forex account is only down 17% in the last month!

Tue, 12/28/2010 - 15:13 | 833957 Arius
Arius's picture

just dont look at the account. it will go up - just dont sell!

think of investing for the long run

Tue, 12/28/2010 - 15:18 | 833989 TWORIVER
TWORIVER's picture

you are too much!

Tue, 12/28/2010 - 14:31 | 833850 thepigman
thepigman's picture

Benron=epic fail on bonds. The guy

can't hold yields down as promised.

We're fucked.

Tue, 12/28/2010 - 14:42 | 833880 jbc77
jbc77's picture

I'm not so sure his intent was to keep rates down as he stated. I beleive his intent is to hide the insolvency of the banking sector as long as he can in hopes they can repair themselves.

Tue, 12/28/2010 - 15:02 | 833926 thepigman
thepigman's picture

You're probably quite right which makes

him either a liar or an incompetent.

Tue, 12/28/2010 - 18:00 | 834458 sushi
sushi's picture

You should give him the benefit of the doubt and accept that he may be both a liar and an incompetent.

Tue, 12/28/2010 - 14:32 | 833851 HarryWanger
HarryWanger's picture

Of course this is good for stocks. Money is clearing moving into risk or equities. This should not surprise anyone.

Tue, 12/28/2010 - 14:36 | 833860 thepigman
thepigman's picture

You're a real shill, Wanker. Which

firm are you with?

Tue, 12/28/2010 - 14:38 | 833866 thepigman
thepigman's picture

Oh, and Wanker? See how a dead

housing market correlates with economic

health throughout US history.

Tue, 12/28/2010 - 14:37 | 833861 HelluvaEngineer
HelluvaEngineer's picture

That and high end handbags, burritos, and velvet Elvis paintings.

Tue, 12/28/2010 - 15:05 | 833934 cosmictrainwreck
cosmictrainwreck's picture

Harry, you're my heeeero <kiss-kiss>

Tue, 12/28/2010 - 15:07 | 833943 total nonsense
total nonsense's picture

Lets talk in a year Harry Wanger or maybe then you will disappear when it all comes CRASHING down

Tue, 12/28/2010 - 15:38 | 834051 HarryWanger
HarryWanger's picture

Strange, I heard the exact same thing at the end of last year. How'd that work out??

Tue, 12/28/2010 - 16:02 | 834107 total nonsense
total nonsense's picture

It worked out very well with all those fed dollars inflating the market but how about when all the money is gone? then what Harry. The fed is done it well has run dry and by the way the US market in dollar terms has not done well my friend

Tue, 12/28/2010 - 14:40 | 833878 jswede
jswede's picture

"Indirects accounted for 35.6%, Directs for 6.2%"...

those are the participations from the Nov 23 auction.  17.1% and 13.4% for today's....

Tue, 12/28/2010 - 14:46 | 833891 wiskeyrunner
wiskeyrunner's picture

Just another green day for stock indexes, no such thing as a down stock market.

Tue, 12/28/2010 - 14:49 | 833897 ZackAttack
ZackAttack's picture

Clearly, in this the best of all possible worlds, we can only pray to the market gods that the 10y yield will rise 10bp daily.

Tue, 12/28/2010 - 14:51 | 833902 thepigman
thepigman's picture

The bernank is stinking of failure.

Tue, 12/28/2010 - 14:55 | 833914 Cdad
Cdad's picture

Who needs debt instruments anymore?  Really, who would buy a bond?  Considering how stocks have nothing but upside, isn't the whole idea of lending money at a percentage rate of return...isn't that dead and gone yet?

After all, Ben Bernanke buys those, doesn't he?  Why would anyone buy what Bernanke is buying when his purpose is to distort certain markets [like T bills] so that folk leave those things and run into overpriced stocks?

Everyone is supposed to just party at the Roach Motel [SPY].  The drinks are paid for by someone else, and who cares about anyone else anyway?  Seriously, who would hesitate about spending a trillion here or there on bonds that some other generation can pay for?  Get with it.  I'm signing off on drink tabs up at the Roach Motel tonight.  So come get your drink on and dump your bonds already, especially if you are old and useless and require income.

Tue, 12/28/2010 - 15:05 | 833935 thepigman
thepigman's picture

Makes me think about what a crackpot the bernanke must be.

Tue, 12/28/2010 - 15:04 | 833933 RobotTrader
RobotTrader's picture

Money is fleeing out of bonds to buy consumer stocks like Zales.

Tue, 12/28/2010 - 15:08 | 833942 thepigman
thepigman's picture

What a pos Zales is robo. Are you blind

to the parabola? You're all beta all the

time. Ultimately that's a loser's strategy,

particularly if they suck you back in to

buy the dips. Retire already. You got

lucky.

Tue, 12/28/2010 - 16:47 | 834221 MarketTruth
MarketTruth's picture

Robo likes buying at the top... that is why he hates physical gold and silver as the top if far from in.

Tue, 12/28/2010 - 15:20 | 833994 TexDenim
TexDenim's picture

What's interesting is that it took this long for the Fed Treasury scam to break down. Expect the real fireworks after the Robo-Hedgehogs have racked up their year-end hurdles, which they seem to be doing as we speak.

Tue, 12/28/2010 - 15:25 | 834003 fatsak
fatsak's picture

Bought a couple skids of Alcohol and Costco.  Alcohol always a good bartering commodity.

Tue, 12/28/2010 - 17:54 | 834446 Ned Zeppelin
Ned Zeppelin's picture

I think Robo is being just a little bit sarcaustic <sic>.

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