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Fed Jawboning Leads To Smooth 7 Year Bond Auction
It only took virtually all the Fed's hawks and doves to undo Bernanke's damage from last week, and jawbone the markets into submission, and halt the stock and bond selloff. Although, judging by yesterday's dismal 5 Year bond auction, few were convinced that the bond market was stabilized. Which is why today's belly buster, 7 Year auction - the last of the week - was going to show just how much more daily sermons from the Marriner Eccles priests we would get ahead of next week's 10 and 30 Year auctions. Not surprisingly, it performed admirably, and was far stronger than this week's previous 2 and 5 years weak placements.
To wit: yes, the yield was the highest since July 2011, as was to be expected, however unlike yesterday's collapse in the Bid To Cover, today's bidside interest was solid, with a BTC of 2.61, just off last month's 2.70 and not much below the TTM average 2.67. The internals showed that while Dealers took just 3.784%, or the lowest since December, it was the Indrects again that loaded up on a disproportional amount of paper, which at 46.44% was the biggest Indirect takedown since August 2011. And while the Direct allottment of 15.72% was below May's 20.68%, it was just below the TTM averge of 17.26%. In other words, a far better auction and a much better tone to close this week's Treasury auctions. Now if only the US Treasury actually had permission to issue net debt instead of having to squash various retirement funds in order to make room for yet another day's billions in deficit funding, while the US remains and will remain at its debt ceiling for the next 5 months...
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Gold falls through the floor
A TBO....Transient buying opportunity
Shit, we're still a year or more out, from any real drama happening if these pussies can be talked off the ledge that easy!!!!!
Plus it's Hamptons time, 4th weekend coming up, Wall Street needs to get back into a partying sort of mood! All this doom and gloom had them feeling bummed out and feeling uneasy! Time to get back to feeling like, hookers, blow, and excess is king again!
Nobody is going to want gold on their books when the quarter ends. They will be eaten alive by their renters....the ones that pay attention to the holdings that is.
Would not be surprised to learn that the NSA targets everything that is a threat to the domination of the US dollar including gold. Without confidence in the dollar, NSA would not be getting its $80 billion a year. Wars are always about money.
Yes, Bonds of a BK government are looking attractive at these yields! http://tinyurl.com/mem7o7x
So now people move billions just based upon vague speeches from various Fed heads? Wow what a batshit crazy world.
Not surprising given the training courses provided by EU leadership in the past two+ years.
I hear batshit is good fertilizer for Banker magic beans.
lacker says. game on. http://hedge.ly/139ap1c
just in time for EOQ - some bond funds need cash for redemptions;
gross and gundlach smiling
Somebody, somehow and quite soon will crap this thing pretty bad, unless USA +UK+Europe+Japan have all decided to be sovietized simultanously
They have so decided, comrade...some time ago.
it can't be, it just can't be
I think what you went through was so rough that you just can't accept the idea that it could happen again.
I don't blame you.
Watching wild (and all downward) volatility and volume in the paper gold market while the equity market glides effortlessly and volumelessly and comatosely higher ... surreal. I just don't know what will stop the plunge in gold futures though.
How shocking is it, that every end-of-quarter, we see miraculous rallies in stocks and bonds. And now, add to that oil. And a smackdown on gold.
I guess the markets want moar Bernanke less and moar everybody else moar.
The rise in rates is probably over for now, and bad news from Europe or another troublespot can cause a haven rally quickly.
http://dareconomics.wordpress.com/2013/06/27/around-the-globe-06-27-2013/
you could argue the Fed Chairman is "taking a risk." obviously he got everyone blabbing that's fer sure. "okay...we're all on the same sheet of music after all then." but by showing he's not afraid of pushing the economy into a recession the Chairman is stating (for those that care to listen) that inflation is of ZERO concern. this...in addition to be dispositive (as in we don't need to parse these words folks)...is also growth positive. in other words GOOD FOR THE ECONOMY GOING FORWARD. obviously the Tylers Durden got what they want with an 800 point collapse in equities "and craziness in China." but as well commodities have...for lack of a better term..."been killed." has he escaped his "we had to destroy the economy to save it" moment? remains to be seen. i would agree with Krugman that "this was a mistake." these things happen all the time of course and clearly "this is a very radical policy prescription" so this "mistake" is not out of character for the Chairman. for those who've made all this money because of this Chairman to now wheel around and start lambasting because "the goal of the Fed Chairman is to give them free money all the time" is certainly ridiculous of course. Wall Street still appears addicted to all those numbers and math. I'm glad to see the Fed Chairman isn't.
YEE HAW! RIDE THEM FERAL HOGS AND GIT 'EM THROUGH THE GATE. YEE HAW!
All HAIL the William Dudley!
It's not Fed jawboning that got it done, it's Fed money printing and funneling through their friendly banksters with the promise to buy those Treasuries back at a profit.
In other news, CFTC Files suit against Corzine to ban him from trading futures; almost 2 years after he stole $1.2 Billion dollars from investors with the help of J.P. Morgan Chase.
No crminal charges. A protracted civil case which will result in a slap on the wrist and a cash payoff "get out of jail free" card type settlement.
NO TRUST.
the cftc is suing him first so no-one else can. this is another injustice heaped upon the victims.
Just saw that on my ipad. Cnbc alert. What a fucking useless lawsuit. Why bother? Why even waste the tax dollars? Seriously what a fucking sideshow.
"For example, when prices fell in mid April and again since last Thursday, the declines were attributable to massive quantities of gold and silver being sold in a short key time, a pattern that does not normally occur in a free market. Parties seeking to liquidate a large gold or silver position at the highest possible price will try to do so while attracting the least attention. Almost always, such sales are allocated among multiple brokers, none who know that they are only handling a small part of the total quantity being sold. Such sales also tend to be sold over the course of multiple days and even weeks and months so as to avoid attracting attention to any broker’s activity.
The suspicious activity in April and this past week involved single massive sales that were executed precisely at critical times during the day. Among these key times are 1) the opening of the London Bullion Market Association, 2) at the London AM gold fix, 3) at the COMEX open, 4) at the London PM fix, 5) at the COMEX close, and 6) during the ACCESS market which opens 30 minutes after the COMEX closes. By large quantities, I mean that some of the individual sales were for paper contracts equal to multiple months of worldwide mining production. About the only entities that could even arrange for the size of some of these sales are a handful of central banks and international institutions such as the International Monetary Fund and the Bank for International Settlements. Effectively, these sales were structured to guarantee that the metals sold for the lowest possible price – not the goal of investors."
http://numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=26979
http://www.silverseek.com/quotes/24silver.php
BIS and The William Dudley (and NYFED nerve center) where the COMEX charade is protected and defended.
Come on Tyler, get on this. It is the story of the financial and monetary corruption taking place right fucking NOW.
Another drill tomorrow. This time on Wall Steet. We all know what a 'drill' means.
http://www.pcmag.com/article2/0,2817,2420587,00.asp
Seriously, Gold, wtf? They ramp the US markets just to remind everyone that they can. We are just passengers in a bizzarre world.
Little off topic but since we haven't had any bitcoin articles in awhile. Looks like we have a first, DEA confiscating bitcoins using asset forfeiture laws. Well that is an admission they consider it more than 1s and 0s and if not money a real asset at a minimum. More validation that bitcoin has real value if they seize it.
http://reason.com/blog/2013/06/27/bitcoin-reaches-new-milestone-dea-swipes
Let's Talk Bitcoin reports that for what may be the first time ever, the DEA has seized bitcoins from a drug seller on Silk Road, the digital marketplace for drugs (and other things) that's hidden on the Tor network. The notification of asset forfeiture (which the DEA is required by law to post) is below:
According to TechCrunch, Hughes "was described in some [Silk Road] postings as being an incautious drug salesperson." I asked for comment from the DEA earlier this week, but have yet to hear back. Here's Let's Talk Bitcoin speculating on how the seizure happened: