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Treasury Sells $29 Billion In 7 Year Paper With Record Direct Bid
In the last of this week's auctions, the Treasury just sold another $29 billion in 7 Year paper, which priced through the When Issued 1.873%, at 1.870%, the lowest yield since May, and at a Bid to Cover of 2.66, substantially higher than the 2.46 in September, and above the trailing twelve month average yield of 2.61%, once again reversing the recent trend in declining BTCs seen recently in both the 2 and the 5 Year auctions. And while the auction was largely non-remarkable, where it stood apart was that the Direct take down of 23.93% was the highest in history, with Indirects taking down 42.30%, above the 12M average of 42.3%, and the remaining 33.77% - the lowest since December 2010 - left to the Dealers, which will promptly flip this particular CUSIP WC0 back to the Fed.
And now, all eyes on the Fed, who will promise to continue monetizing as much 7 Year paper as the Treasury has the good grace of issuing.
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What is left of "merica" is very much for sale...
In a "debt is money/wealth" system, sovereign debt must grow (just not at the current yields).
Would anyone here be so kind, please, as to explain what the significance is (or might be) of the record buy by "the directs?"
Is this important? Or just interesting to credit junkies?
I noticed we didn't get any tweets from Bill Gross today... Too busy front running the Fed. I guess?
Bill Gross is no different than any other leech trying to suck money out of the system for doing anything actually productive for society. Just another scumbag as much as Stink, Blankfiend, or Demon, et. al.
Why bother with auctions? As of now, THEY set the rate, and THEY buy it all. We really have gone over the edge. Funny part is the only way we et away with it is the rest of the world is 10 times more corrupt and screwed up than we are. But boy we are going to teach them all a few things before its all over. Greed always kills the golden goose. What a shame, nothing to do but sit back and grab popcorn.
They just had to push the phony paper prices of Gold and Silver below 1350 and 23 heading into the Fed bullshit statement didn't they...
hilarious. ....
Humble Bearing (well maybe not so humble) would suggest that, ahh, perhaps you not buy these 7 year bonds...
why even have an auction....just call it a transfer.
why are they even dealing with this kind of pocket change? but I understand, 29 billion here, 85 billion there, and before you know it we're talkin' real money.
OK, I just saw an ad on ZH for single, muscular women. Now I may by guilty of having once or twice viewed some – ahem – non-mainstream material on the web, but I surely don't recall having sought out muscular women. Perhaps this is the tipping point, and the collapse is imminent...