2 Year Auction Prices At New Record Low Yield Of 0.222%, Well Inside Of 3 Month LIBOR

Tyler Durden's picture

Today's auction of $35 billion in 2 Year bonds was supremely forgettable aside from the yield, which once again was at an all time low, well inside of Libor, at 0.222% (to be expected since all bills for the next 3 months are yield negative rates), 1 bp inside of the When Issued of 0.23%. Even the internals were very boring, Directs, Indirects and Dealers all came on top of averages, with takedown ratios of 15.88%, 31.64% and 52.51%, and the Bid To Cover at 3.44, just wide of the LTM average of 3.38. All in all, a completely unremrkable way for Investors to park cash in what is the new equivalent of 4 Week Bills.

And here is 3 Month Libor. Two words: counterparty risk.

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HelluvaEngineer's picture

Why are these bond guys so dumb?  Don't they know it's time to BTFD in equities?

ZeroPower's picture

Bonds > Equities, in so many ways.

Silver Bug's picture

Bonds are by far the biggest bubble in our current history. People who imply Gold is in a Bubble have no idea what they are talking about. Who in their right mind would invest in these bonds?!



malikai's picture

You are, by force. Just as I am, by force. Even though we don't know it.

spiral_eyes's picture

watch these yields SHOOT UP when the market finally clocks bernanke is stuck between a total crash and the chinese and russians saying NO to qe3, and realising that those treasuries ain't safe at ALL.


MillionDollarBonus_'s picture

Well at least we can rely on a fair LIBOR rate since it is set by PROFFESIONALS at a few selected elite banks. The bond rates on the other hand are set by the markets which unfortunately include a lot of ignorant libertarians who refuse to recognise our congress' ability to manage complex issues, depsite their repeated demonstrations of courage and perseverence.

Terminus C's picture

Is this Hamy's latest incarnation?

Either way, your trolling attempts are pathetic at best.

topcallingtroll's picture

That is not trolling.

That is very deep satire.

Hi Hamy!

TruthInSunshine's picture




Economy is in a depression.

Real UE is 20%+

GDP is probably running at -4% to -5% YoY rate (soon to be running at -7%+).

Housing sales are at an ALL TIME LOW with this 'recovery' melting down like Fukushima: 


Wall Street Journal (blog) - Dawn Wotapka - 5 minutes ago

Sales of new homes fell again in July, hitting the lowest level in five months and keeping the sector on track to again report the lowest annual sales since record keeping began in 1963.

The banking-financial and equity markets are about to enter a WORSE crisis than what we saw in 2008.

And the developed nations are trying to dig themselves out of a very deep hole by pissing upwardly (with China not knowing what to do in the face of the crises they face).


It's all about jobs, wages and the middle class, and ObaMao, Jeetner, Bernankstain and CONgress can't do anything about J-O-B-S when the multinationals own the globe (because they, with their european counterparts, gave the multinationals the keys to the joint).


SeverinSlade's picture

This is all bullish for stocks.

DonutBoy's picture

This is insane.  Undisciplined fiat currency has destroyed all price discovery.

F**k.  I have to buy more gold.

youngman's picture

Lots os under jobbed Real Estate agents out there....I remember when every housewife had a license...I would assume the ranks have dropped off as the license fees and insurance is very expensive...I wonder if commissions are dropping also...still 6% is bad....should be 2% with computers now....

TruthInSunshine's picture




2% for opening the door, handing out a flier, and saying:

"And this is the kitchen. Notice all the cabinets? Here's the refrigerator. Now, let's go stare at the bathroom."


Real estate commissions are on the Extinction List.

LawsofPhysics's picture

I agree, cash and carry is coming back in my neck of the woods.  To expand upon this, think of it this way, there are too many middle men (Banks banks and brokers of all sorts) between those with real capital or money and those of us that know how to make things or provide services of real value.  Time to get those "keys" back motherfuckers.  We can either do this the easy way or the hard way.  My guess is the "middemen" won't go quitely into that good night.  Fuck em.

Robslob's picture

at least it is on sale today

Terminus C's picture

I am at a total loss as to why an 'investor' would buy bonds at this rate. You get about this much interest from a savings account.

I get why banks and government buy them...

Growyourownfood's picture

Apparently Italy is coming back to market with new bond issues starting the 26th. Does this mean the 25th will be guaranteed good news day for markets? Don't think they would plan an auction after a no-QE3 day...

Terminus C's picture

That is an interesting tell.

Certainly supports a QE3 announcement... So does this stock rally.

I Told YOU So's picture

AGG just posted a reversal (down) on the P&F chart., bonds possibly topping here 

time to buy TBT?

iShares Barclays Aggregate Bond Fund (AGG)

LawsofPhysics's picture

I agree, either interest rates go up (no more "official" QE) or gold goes up (more "official" QE).  Rock and hard place for sure.

orangedrinkandchips's picture

you are paying this fucking govt to hold your money....fucking stupid...but the people buying this shit isnt their money..."im sorry i lose your ass"..doesnt cut it...who the fuck buys this shit? risk/return is a more basic theory than supply/demand.....i dont get it...

orangedrinkandchips's picture


I Told YOU So's picture

@orange, with respect

you dont get it because you probably do not "trade" the bonds, or in my case the options, you can buy/sell the verticals and define your 

risk/reward in advance of making the trade. nothing less nothing more.

I just wanted to point out that if the bond market "cracks" good money can be made this way, and the risk is defined by the spread width vrs. 

the cost of the spread, whether you buy it or sell it. 

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