2 Year Auction Prices At New Record Low Yield Of 0.222%, Well Inside Of 3 Month LIBOR
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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Why are these bond guys so dumb? Don't they know it's time to BTFD in equities?
Bonds > Equities, in so many ways.
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?!
http://silverliberationarmy.blogspot.com/
You are, by force. Just as I am, by force. Even though we don't know it.
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.
http://azizonomics.com/2011/08/23/what-if-qe3-doesnt-happen/
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.
Now that's how to troll.
Is this Hamy's latest incarnation?
Either way, your trolling attempts are pathetic at best.
That is not trolling.
That is very deep satire.
Hi Hamy!
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
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).
This is all bullish for stocks.
This is insane. Undisciplined fiat currency has destroyed all price discovery.
F**k. I have to buy more gold.
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....
2% for opening the door, handing out a flier, and saying:
Real estate commissions are on the Extinction List.
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.
at least it is on sale today
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...
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...
That is an interesting tell.
Certainly supports a QE3 announcement... So does this stock rally.
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)
I agree, either interest rates go up (no more "official" QE) or gold goes up (more "official" QE). Rock and hard place for sure.
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...
NO RISK WHATSOEVER....WHEN IT AINT YOUR MONEY!!
@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.