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Despite Ongoing Bill Fireworks, Treasury Sells $21 Billion In Debt In Quiet 10 Year Reopening
The Bill bust up may be causing ripples and major headaches for short-term funding liquidity, and as of today for repos and money markets, but for now at least, the tranquility on any point in the curve longer than a month is untouched. Case in point, the just completed 10 Year auction in which the Treasury sold $21 billion in a reopening of the VS6 CUSIP, at a yield that was well through the When Issued 2.666%, pricing at 2.657%, even if this price was hit following a gradual sell off in the 10 Year throughout the day. The Bid To Cover of 2.58 was somewhat concerning as it was well below last month's 2.86 and below the 12 month average of 2.78, bet better than the auctions from August, July and June. The internals were also less than remarkable, with Dealers taking down 40.2%, Indirects ending up with 38.6%, and Directs left with 21.2%, all in line with the TTM average so hardly remarkable. Altogether a quiet auction and one that confirm so far at least, the debt ceiling concerns are solely limited to the 1 Month Bill end of the treasury curve.
Finally, we will leave the irony of the Treasury continuing to sell debt to investors - now a week before the Treasury runs out of money - at a time when everyone is panicking over the inability of the US to, well, sell debt, to the epistemologists among our readers.
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"Look Denise, there's some lovely filth down here".
LOL
So isn't all that garbage bought up almost exclusively by the Bernank????
http://www.marketwatch.com/investing/bond/10_year
nobody in the money gives a crap!!! whats for dinner?
Cool word...had to look up epistemologist.
And the fucking Dow reaches cor the heavens on exactly what?????.???????
They can sell all the debt they can issue for as long as they wish. The Fed never needs to "shrink its balance sheet" - which is the part the "analysts" can't understand.
There's a captive mercantilist market for this stuff. Anyone selling to the U.S. almost HAS to buy Treasury debt...the more so in a world of ZIRP.
One day, maybe, we'll see commodity price inflation and price inflation in everyday goods. But it needs to happen as a result of a loss of confidence in the dollar - NOT as a result of (real or fake) "economic growth".
Can anyone see that happening? Not unless - somehow - some of this printed money escapes the clutches of the speculating institutions and winds up in the Main Street economy. Not going to happen.
Fed buys treasury debt and stuffs it. All the toxic debt if off balance sheet now.
It would be easier to win the lottery than to find someone who actually bought some of those treasuries.