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Weakest 4 Week Auction Since July 2009 Closes at 0.16%, Bid To Cover Of 3.56 Lowest Since August 2009
Another $34 billion 4-Week auction closed, whose high rate of 0.16% was not only the highest in 2010, but the highest since July of 2009. The Bond vigilantes are finally stirring, not only on the long end, but are starting to question the quality of Bernanke's alleged royal flush quintuple all in.
The Directs come to save the day as usual, taking down 16.6% of the auction, well over double the one year average Direct Take Down of 7.2%.
Today we also saw a $26 billion 52 week auction close, which just like the 4 Week ended at the weakest rate, 0.49, since 2009, June to be precise when the auction closed at 0.55%. The Bid To Cover came in roughly as expected at 3.66.
The savior of the 52 Week? Direct bidders, yet again. Directs bid $11.1 billion into the auction, a record and higher from last week's $10.7 billion. The direct take down was just shy of a record as well, coming in at 16%, even as indirects decline. In fact, the Indirect bid of $13.5 billion was just barely above the Direct (as noted above), and resulted in one of the highest hit ratios ever, at 78.4%, a number surpassed just once before on June 30, 2009 when it hit 82.8% (the average hit ratio is 66.3%).
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No worries....
The REITs and consumer stocks are flying...
They could care less....
... and the price of Oil is testing the American people’s patience...
ooops, sorry, who said mr. Big Ben cares about the American people...
Interesting that oil prices are moving up but refineries are idling more production and there was story today about less tankers being needed because of light demand. So oil prices are up on low demand and big supply...sounds like inflation to me, but surely the Fed coming to the party with infinite liquidity has nothing to do with it.
Nothing says green shoots like gas back at $4 and U3 around 10%.
Agree (sadly)
Contango's up again. Excess supply soon to head back out to those oh-so-cheap tankers.
Nflx over 80 about says it all...party like it's 1999.
LOL! I was thinking the exact same thing.
I think all headlines on ZH should, from now on, end with the words: "And Stocks Rallied on that News" (or some variation thereof)
Yeah - kind of like reading a Chinese fortune cookie fortune and adding "in bed" to the end of the fortune. Try it ;-)
"World destroyed by asteroid - S&P500 launched into orbit!"
"Israel nukes Iran - Dow Jones on fire!"
Cramer will be proud! Early non-cyclical sector rotation at it's finest. What happens when it "recoery" does not come?
I dont recall the last time the Dow closed down over 50 points in a day.
Another shitty auction? Gee I wonder if anything is wrong.
This really feels surreal, the world of debt is coming unravelled from personal to sovereign, yet the market stumbles onwards and upwards in blind faith that it alone can save the world. Those that are goosing it ever higher trading between themselves must be thinking, "Hey, look,the market's fine so we're all going to be ok."
Oil is rising as a result President Obamas stimulus package passed last year.
Shovel ready jobs require oil.
Oil requires shovels.
See the logic?
That's some weapons-grade funny right there.
Petroleum is also used in vasoline cause thats all this mkt is.. a stroke job. Cnbc is infatuated with it wonder why.
I trust that ZeroHedge has been keeping an eye on the direct bidder sales back to the Fed post-auction.
I only wonder what new shenanigans they can develop to make us feel that everything is okay. Maybe buy through a pizza parlor in New Jersey...
@Orly: "I trust that ZeroHedge has been keeping an eye on the direct bidder"...
I was also wondering who these "direct bidders" are......
Most interestingly, bank stocks are on a tear, XLF is up 1%. All the toxic crap they are holding must age well.
Its OK, because even though alot of it is underwater a bit right now, they're going to hold to maturity, so eventually it will all be cool.
One wud hafta wonder at where those auctions would be if Greece wasn't around. ..and in general, the case for keeping the FED in its present form has yet to be conclusively made.
As to Cognitive Dissonance's 'where to start for a group re-think?', I'd say that the problem with where America ended up with didn't happen so much at the grassroots level (the americans I've met were all warm and enthusiatic), but with a rotten Judiciary. I believe it's possibly criminal to suggest that the US should have any party of its sovereignty lessened (?)..so my two cents would be to form a working group on framework for a (doesn't really have to be) new constitution.
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