Weak 2013 Inaugural 10 Year Issue, As G-Fund Further Plundered To Stay Under Debt Ceiling

Tyler Durden's picture

The last time the US held a 10 year auction was earlier than its usual time on December 12, just before the Fed announced QE4EVA. The result from that particular auction were a total jumble, where Primary Dealers took down a tiny 33.1%, and where Directs were stuffed with a near record 42.7%. That and a big, 1.7 bps tail. In this light today's 10 Year was a little more casual, with the Treasury just issuing another $21 billion in 10 year bonds, this time not premonetized unlike tomorrow's 30 year auction, although the internals were just as ugly. The When Issued was 1.855%, with the final High Yield of 1.863% tailing (84% allotted at high). The Bid to Cover was 2.83, the smallest for a reopening auction since December 2009, and well below the average for 2012 of 3.03. Indirects took down just 28.5%, the second lowest in years, and better only compared to December's 24.2%, while Directs ended up holding only 14.8% of the final allocation, a big drop from December's 42.7%, which increasingly appears to have been a year end window dressing by various credit funds to show "safe securities" on their books. Overall, an ugly 10 Year auction following another ugly 10 Year auction, even if the past week has seen the yield on the paper drop substantially from 1.97% a week ago to 1.86% today. Was that it for the great "bonds to stocks" rotation?

In other news, the G-fund is plundered by another $21 billion today to preserve headroom under the debt ceiling, which has now been breached for 10 days running.

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AccreditedEYE's picture

Well, here's the RIP-Fest higher... hope some of you BTD with me.

Venerability's picture

Yahoo Finance's Front Page - is it now jointly edited by Princess Dennis and Larry Kudlow? - has TWO silly anti-Gold propaganda stories this afternoon. Very rare for them to not rely on just one.

On the bright side, now that the entire market is simply a chess game, OUR side can certainly do as well as THEIR side can.

And we will!


WhiteNight123129's picture

Nay, not rotations, market starting to finally smell the coffee.

Shizzmoney's picture
U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion

WASHINGTON—The U.S. economy ceased to function this week after unexpected existential remarks by Federal Reserve chairman Ben Bernanke shocked Americans into realizing that money is, in fact, just a meaningless and intangible social construct.

It's just an illusion," a wide-eyed Bernanke added as he removed bills from his wallet and slowly spread them out before him. "Just look at it: Meaningless pieces of paper with numbers printed on them. Worthless."

According to witnesses, Finance Committee members sat in thunderstruck silence for several moments until Sen. Orrin Hatch (R-UT) finally shouted out, "Oh my God, he's right. It's all a mirage. All of it—the money, our whole economy—it's all a lie!"


sunaJ's picture

Nice.  I have noticed how Onion reports seem to have become increasingly difficult to discern from real news stories as MSM and the "official social narrative" spiral toward the surreal. 

AmeliaV's picture

 Well, I think that the US government should focus on saving money and cutting expenses, the national debt grows with each day. How we can have a healthy economy if we spend more money than we make? Probably the debt has never been so big. The economy is totally debt-based today, we try to fix all the financial problems with a help of borrowing money or taking out online payday loans. It’s important to understand that we will not go any further if we will not start saving money. The government should take a sober look at the economy and to realize that they have to cut spending and start paying off the debt to help the economy to recover.