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Weak Five Year Auction Interest, Substantial Drop In Indirect Bids
- Yield 2.689% vs. Exp. 2.635%
- Bid/Cover 1.92 vs. Avg. 2.37 (Prev. 2.58)
- Indirect bids 36.7% vs. Avg. 45.94% (Prev. 62.87%)
- Allotted at high 31.16% (BBG)
Weakness in Five Year spreading to Two Year next.
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Stupid Chinese, don't they know that if they don't buy the value of their holdings goes down?
Dumb bastards.
Are you tempting the banker to sell off their market again tonite? The jpy saved today from turning into a debacle, but do you really want to know what the banker's next best offer will be? Deal or no deal?
V
UN-FUCKING-BELIEVABLE !!!!! THIS IS A MUST WATCH VIDEO ...... TRULLY JAW-DROPPING .... http://www.youtube.com/watch?v=Gkf8VG3HL_8
This surprises you?
Nothing shocking to me, this is how the Fed works, and who it works for.
Dude, there's a giant depression. Why the hell would you encourage banks to lend money?
yeah, i mean fuck it .. let park the money we got from the people in the FEDs vaults, get payed for it, and endure the storm getting blowjobs from 5000 $/hr whores, and watch how the people struggle to get by on day to day basis ... yeah fuck it ... oh ... and we will need some class A blow also ....
That's what I'm talking about! Hookers and blow! NYC! NYC!
hookers, blow and HFT ! oh and +1 for the NYC thing ...
BB: "Does anyone mind if we burn shitloads of money paying interest on the taxpayers money we lent ya?"
Banks: "Can we keep the interest!"
BB: "Not just the interest! Keep it all!!!!"
What "banks"? The hoarders of contraband currency you mean?
What would you say to a private debt jubilee? A stake through the heart of these financial vampires?
Great play! Thanks, CB!
you are welcome Bob .... at least someone is appalled by this shit .... I'm just wondering what will we find out next .... that the banks took out a bunch of CDSs betting the US will fold ... something like a self-fulfilling prophecy ...
What is the spread between what the Fed gives the banks and what you get on T bills?.
Your getting the cheeks of your ass spread for the big one without KY.
Pigstein, its not about the goddamn spread, its about the fucking theft of the millennium done by the FED, Hank Paulson and the rest of the Pigs which inhabit Wall Street ... stop being a goddamn pussy, and realize that this was one of the largest heists in the entire goddamn history of mankind ... or you just have so much money that you don't really care ... anyhow; get your shit together and start making some goddamn noise ...
oh and BTW it is not your but you re as in you are getting he cheeks of your ass spread for the big one without KY ...
I get it that we have been robbed and laid to waste. The point is that the Fed subsidizes the banks, the rest of us get nearly nothing for our money. No offense intended, this system is screwing everyone except the beneficiaries of this fraud.
better late than never and thanks for posting
the clip but this is old old news....
i was whining to
my lameass CONgressman last year and early this
year about this very crock....
everyone was posting the hockey stick chart showing
a massive increase in the fed balance sheet and
yelping about massive hyper inflation....but
they did not read the rest of h.4.1 report from
the fed.....if you look in the assets portion
(bottom half) you will see reserves ballooning
as well....which means banks were depositing
money to earn the little interest the fed was
paying them.....hence with the money locked up
at the fed, hyperinflation was only a potential....
ben knows that once the money is loaned and
fractional banking does its job at let's say 15:1
then about 10-12 trillion usd credit would rip
through the economy.....so he decided that it
would be better to monetize some crappy mbs, et.
al.
at 1-2 trillion usd....but in order to do that
he has to have those dollars on deposit to back
the shriveling value of those toxic assets...
this is why the fed is insolvent....not only are
the major banks insolvent but so is the fed and
is something which only a few hundred people in
the usa understand...
if the money comes tumbling out of the fed closet
you will see massive hyperinflation....and uncle
benwa balls thinks he can keep it locked there
while the banks self heal through these interest
payments and improvement in economic conditions...
unfortunately benwa is too clever by half and
the project will fail....as a professional quack
he does not realise that bad debt is cured by
liquidation - not by letting it fester into
gangrene....the man is a complete fool.
this charade also demands massive manipulations
of the gold, equities, and currencies markets....
eventually all of the eggs will crash....
/agree
absolutely agree about pretty much everything you wrote, but since we have no idea what the losses are in the banking sector, the self healing thing could last for decades. and youre right about the thing that only a couple of hundred people, or a thousand maximum, know that the entire banking industry is insolvent ...
"only a couple of hundred people, or a thousand maximum, know that the entire banking industry is insolvent ..."
Unfortunately, that includes some Chinese.
+1 for you Cow, and glad to see you are not a Bull
Yes. The Fed is a trade organization to protect the banking industry. Not protect you.
Congress was tricked like a bunch of wet-behind-the-ears newbs.
The saddest part, is that Congress is only just beginning to realize this.
Well put. Tricked, threatened, scared, and/or bought-off.
Wow, I honestly thought most readers here knew this was going on (no offense to anyone intended by that comment - it's not like it's being reported by the media). And Ben Bear has said that he plans on increasing the interest rate payments on bank balances held at the Fed as a means to manipulate the fed funds rate in the future.
Oh no, don't react with such shock and outrage... It all makes sense economically... This is just one of the tools available... Let him explain further how he is doing all this to save the world... Right after the media has had proper time to express their admiration...
Above comment is rendered meaningless now that I opened that Dudley paper posted today, and he spells it out in glorius detail. Much better than Ben did circa the PBS 'interview.'
from bloomberg
“President Barack Obama will sell a net $1.9 trillion of debt in the current fiscal year that ends Sept. 30, Goldman said in its report late yesterday.”
“The U.S. raised $1.02 trillion this year selling Treasury securities to help finance a recovery from the recession, government data show.”
looks like they will have to issue $900 billion more in the next two months.
when almost all countries issue lots of debt nowadays, one can only wonder who’s really buying UST.
the monetizing charade keeps going, I guess.
Yeah, if the above is correct that's about $100 Billion per week in new debt for the next 9 weeks.
With the struggling that's been going on so far, only raising half of it in ten months, the next two months could be interesting.
We also need to remember that the rosy deficit projections for next FY are based on a recovery that hasn't happened, and isn't going to happen, green shoots be damned. So the pressure isn't going to let up after September.
"who's really buying UST?"
Here's a pretty good analysis of who is buying and how much we are selling. I don't think those two are going to equal each other very easily though.
http://www.sprott.com/Docs/MarketsataGlance/June_2009.pdf
Is that a big green shoot?
No, I'm just happy to see you.
LOL
lol +1!
"The Yuan currency swap venture will continue for China. The Peoples Bank of China has arranged six bilateral currency swaps in large volume. They currently total 650 billion Yuan (=US$95 billion) since December with Malaysia, Argentina, Hong Kong, and several European nations. The facility acts like an Import-Export Bank. Under the arrangements, a counter-party center can lend the Yuan provided by the PBOC to domestic commercial entities toward pay for imports. Chinese exporters are thus paid in their own currency, eliminating exchange rate risks and reducing the cost of fund transfers. Thus the bypass of the US$ in settlements."
http://financialsense.com/fsu/editorials/willie/2009/0723.html
one observation, an export oriented economy seems to much more likely to go for those swaps than consumer oriented. The reason is simple, those swaps are a death treat to any local high value exporters. So it might take much more than disproportional news coverage for any EU or developed country to go for those, unless they accidentally lost their marbles (happens to the best of us : ).
Interest rates up, Home prices DOWN
how equities are not puking on this is beyond me. rates are going up. the inflation correlation computers need to be shut down.
I'm not sure I understand why TBT is going down...
naked shorting? oh never mind, they banned that....
I think traders were using the long bond as a hedge to sell the front where all the supply is...or unwind of steepening trades as the front got murdered and they had to cover their shorts in the backend...only a guess but the back end was well bid today
good exchange between Rep. Kucinich and Neil Barofsky - "One fraud after another"
http://www.youtube.com/watch?v=qvZRVNZ5zeY&feature=player_embedded
rates are headed lower first..DEFLATION my friends..
Deflationistas do it for less
Anyone else notice the monster swing in 10-years?
DJ ) 07/29 02:33PM =DJ ICE Says It Doesn't Condone, Allow Flash Trading
DOW JONES NEWSWIRES As a storm begins to swirl around so-called flash trading, IntercontinentalExchange (ICE) said Wednesday it doesn't allow it and that all trades are treated the same. The row became public Friday when New York Sen. Charles Schumer, D-N.Y., told the Securities and Exchange Commission in a letter he will move to limit flash orders - which have picked up in recent months - if the commission does not. In such orders, trades are routed through private liquidity pools before being sent onto other exchanges for filling. Critics have argued that having private-quote data available to some investors - those with access to the private liquidity pools - and not all, could increase costs. In addition, the price of an underlying security is harmed by creating a two-tiered system of investors where those with access get a better price than those without. People familiar with the matter told Dow Jones Newswires this week the commission will act in the near future to bar flash orders, developed by U.S. stock-trading platforms to grab more market share. Several people close to SEC discussions on the matter said the agency was moving to crack down on the orders even before Schumer's letter. ICE said in a statement Wednesday that "flash orders are neither permitted nor available through ICE's trading platform. ICE does not offer access to any equity market in which these trades may occur. All order submissions and trade matches on ICE are treated in the same manner regardless of the customer, message frequency or proximity to the exchange."Schumer's position is lame - do it voluntarily or (maybe) else. Flash trading and any other sneak peek tricks should be outlawed, PERIOD.
And the law should even be enforced for good measure!
Smart American Gangster???
At least we all know that, even Chinese buy and hold more and more, there is still a high possibility their holdings goes down year after year.
Give you a simple example, someday, you lend $100 to a homeless man, and you expect he will pay back $110 one year later. But after 2 months, this GENTLEMAN asks you for another $100 for food. If you refuse, he might dies and your original $100 may disappear. However, don't forget, if you give him another $100, you have the risk to loss $200!!!
Will you do that, SMART kid?
Obama vigorously defends economic policies
http://tinyurl.com/mektdj
Boy's I need a nice close in the green today now get your asses out there and pump that dead dog up.
Beige Book reports slower pace of declines and that businesses have found ways to reduce wages and benefits (more to cheer for green shooters who will probably get paid a kick-ass bonus)
It's almost time to setup payroll direct deposit with the Perth Mint.
Indirect bidders bought more 5yr notes than this time last year.
http://www.treasurydirect.gov/instit/annceresult/press/preanre/preanre_5...
$7b out of $20b accepted. 33%
helps when you change the definition of indirect bidder.
So true
And give the "indirect bidders" treasury money to buy these things! LOL
less than 2.0 bid cover is really a failed auction!!
OT, but has anyone heard ANY follow up on the story of the $135 billion of fake U.S. bonds in Italy? (Yes, I know they were fake.) But has there been any follow up whatsoever? Were the two men arrested? Who were they? Are the feds prosecuting? What happened to the bonds?
I understand why the story would die down a bit once they were announced as fake, but I don't understand why it would disappear completely.
Honestly, try to google this story. It basically disappears on June 20th when someone at Treasury announces that they are "obvious fakes", from viewing them online. Then *poof*. Nothing.
Wouldn't the feds have some more to say about an attempt to counterfeit $135 billion? Scary talk about what they plan to do to these guys to send a message to other counterfeiters? Anything?
and that in and of itself should tell ya something....
Those were fakes flown in from the US from a previous forgery case. The real bearer bonds were never shown.
Anon: JS Kim at seeking alpah has the best take, something to do with the upcoming US Bank holiday in Sept. Oct.
Awesome. Thanks!
Someone wrote the whatever the documents are, they were signed by Greenspan or Bernanke.
Won't feel satisfied until a whole army worth of prosecutions go out the door...
Can you say "TREASURY AUCTION FAILURE", boys and girls? I knew you could.
Now, let's re-visit a little lesson we had recently. It's called "hard currency", which is a euphemism for gold and silver. Oh, you don't know what the word "euphemism" means? Shut up and listen, you little prick, and you might learn something.
I am Chumbawamba.
Hard to believe (sarcastic) but the Pisani blog is claiming victory for the bulls over the failed 5 yrs. I guess he is right due to the highly unusual runup of the spx that is happening as i type.
VICTORY, we are back at levels first reached 12 years ago!!!!
the world seems remarkably calm considering that we've just had our first failed treasury auction.
Is "American Idol" on tonight? Or is it "America's Got talent"?
Sheeple never cease to amaze me.
Sheeple are just that; sheeple, and you can consider yourself to be intellectually privileged, by either mother nature or your hard work, to understand where we stand, and also be privileged to be here among all the people who know their shit ... that's all I'm saying ...
Two things, it was ONE auction. Yes it went terribly, and by "Weakness spreading to the Twos" you must mean the weakness in the 2s reverberating in the 5s. 2s was a poor auction yesterday as well. Think the 10s are going to restructure the same way? I doubt it for the time being. The energy complex is off, stocks are teetering.
Cash does not evaporate, where does it flow?
You don't seem to know, indirect bids are not what they seem. Indirect bids come from primary dealers too, and as such are no reflection of foreign central bank buying.
Which makes sense when you think about it; why would they buy treasuries now when their reserves are shrinking.
what is holding up
class action lawsuits? is there not enough evidence?
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