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10 Year Re-Re-Opening Auction Just Good Enough
Just like yesterday's 3 Year $32 billion bond auction, so today's 9-year 10-month $21 billion re-reopening of Cusip VB3 was largely much better than last month's auction, if not quite stellar, driven likely by the jump in rates, which rose from 1.81% in May, to 2.21% in June to 2.67% today, which was on top of the 2.669% When Issued, and the highest auction yield since July 2011 or right before the first debt ceiling crisis. Today's Bid To Cover, while better than last month's ugly 2.53, was still the second worst since August's 2.49. Finally, the internals were uninspiring, with Dealers taking down $9.5 billion of the precious collateral (10 Year was once again special today at -0.30%) or 45.2% of the total meaning Bernanke can proceed to monetize another $10 or so billion in the 15 Year range for one more month, slightly higher than the LTM average, while Indirects left with 38.6% (in light with the average), and Directs got 16.3% of the auction. Altogether a forgettable auction that was just good enough to relieve the now monthly collateral shortage that gets worst just before auctions.
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The buyers of this 10-year debt will be sufficiently fucked in AH when the human clam opens his mouth in Q&A.
Who buys debt period? Pawnbrokers? What happens when all the stupid people realize nobody is getting paid back.... ever?
Just wait till the minutes. Yields to 2.70%...they have to talk a tough game...as they know it must end sometime. Rock meet hard place.
<< hate La Vorgna more than Liesman
<< hate Liesman more than La Vorgna
shit, just hate 'em ALL! that way no one can call you a bigot.
I hope so slaughterer. 3%. Bring it.
Dr. Bernastee is sweatin like a whore in church today.
the fazmobile is revved up today
Look at the market just chillin' at 1650! Seriously, this volume is laughable. Its like everyone is tip-toeing through the cave of the grumpy sleeping bear just hoping to make it out alive. If he awakens at 2:00pm CST...watch out!
A security becomes a collateral only when it is pledged as such.
If purchased and stored, it is not a collateral.
Buying USTs does not make them collateral.
Making them available in the repo market, makes them collateral.
1650: can't go no higher with the long yields so high and the TBTF losing so much $$$ in their T holdings.
but somehow they are pinning it here for much of todays trading...I do hope the old bearded one chokes on some Q & A but I am thinking its just going to end up with a lot of nonsensical gibberish followed by a round of aplause from the circle of yard apes AKA non event and lets ramp up the markets even more.
There goes the "housing recovery".
If you haven't sold yet and want to you'd better do it now.
Funny. Since May 2, TNX is up over 60% in yield, and the S&P is up about three percent in price.
Either stocks are correct, or something is wrong in Bernankeland.
Clear the docks, backing up silver truck dock 1, long tbond dock two!
Nothing like living pay check to pay check. It seems to be the American way.
Shouldn't that be living EBT refill to EBT refill ?
Anybody who bought any UST bonds in the last 1 year, is suffering a great loss. Last 2 months have been a disaster in particular for even mega stars like Gross and Gundlach, not to mention every single bond fund with every single top bank, peaking about 12 months back and never looking back. Some funds peaked about 2 months ago due to varying duration. When the yields touch 3% and then 4% is a matter of debate, not if.
Let the tsunami of interest rate rises begin....
At what point does Leonardo scream, 'I am the king of the world'.....before the Titanic sinks, right? :) Am sure Bernanke is thinking the same! 'Kate' went missing while he was busy thumping his chest! Wonder where she must be? Hmmmmmm.....
Watch this video to see how the market will react shortly...maybe in the next few minutes....or when Bernanke speaks in Boston?
http://www.youtube.com/watch?v=8aqDoPDgjco