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Auction System Failure Forces US Treasury To Postpone 3, 6-Month Bill Auctions

Tyler Durden's picture


While nobody is impressed by breaking equity and options markets anymore, since this has become a virtually daily ocurrence and the habituation level is high, bond markets, and especially the US government's "guaranteed" bond issuance machinery, are a different matter altogether. Which is why any time something out of the ordinary happens, people pay attention. Such as what happened moments ago when the US Treasury announced that it would delay the closing of the 3 and 6 month Bill auctions, originally scheduled to close today, to tomorrow.

The reason: "an error that occurred during a test of Treasury's auction system."

This is curious, as it implies there was a test of the system running concurrent with the actual bond auction. One wonders if instead of the stated reason, there simply wasn't yet another "glitch" with TAAPS, which as we reported in September, had an error due to an order by none other than Goldman Sachs, being stuck in the quere, for reasons unknown resulting in yet another abnormal 3 and 6 month Bill auction.


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Mon, 12/02/2013 - 12:26 | Link to Comment Al Huxley
Al Huxley's picture

Wow, that system's pretty much constantly in use, you'd think they'd have the bugs worked out by now.

Mon, 12/02/2013 - 12:28 | Link to Comment NotApplicable
NotApplicable's picture

Please do not worry.

Mon, 12/02/2013 - 12:38 | Link to Comment NoDebt
NoDebt's picture

It's just Skynet/NSA penetrating you by the back door.  

Oh, wait a minute... that's not at all how I wanted that to sound.  Ah, screw it.  It stays.

Mon, 12/02/2013 - 12:40 | Link to Comment Richard Chesler
Richard Chesler's picture

AKA Goldman didn't get the price they wanted.


Mon, 12/02/2013 - 12:44 | Link to Comment Four chan
Four chan's picture

what a charade. 

Mon, 12/02/2013 - 12:58 | Link to Comment knukles
knukles's picture

To paraphrase Dear Leader:  "If I knew how to code I'd fix it myself."

I can't make this shit up
I didn't make this shit up by myself...

Mon, 12/02/2013 - 13:04 | Link to Comment Muddy1
Muddy1's picture

Brought to you by the same folks that gave us

Mon, 12/02/2013 - 13:36 | Link to Comment ThisIsBob
ThisIsBob's picture

And all the sparks at NSA Utah.

Mon, 12/02/2013 - 16:47 | Link to Comment Supernova Born
Supernova Born's picture

A "need to lie" moment.

Mon, 12/02/2013 - 14:18 | Link to Comment PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

.."you didn't make that shit up!"..

Mon, 12/02/2013 - 14:44 | Link to Comment ZH Snob
ZH Snob's picture

yea, the error is that buyers have figured out  Charmin is a much cheaper and better brand of toilet paper.

Mon, 12/02/2013 - 12:30 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Maybe is use share code from

Mon, 12/02/2013 - 12:36 | Link to Comment Quinvarius
Quinvarius's picture

Just the part that talks to the NSA and the IRS.

Mon, 12/02/2013 - 12:39 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture



As much as I would like to blame the wet weather...

My spidey senses, and our internal numbers, tell me that something is up in the real economy, and the smell of the .gov BS is getting stronger.

November was the wettest and worst month on record for us in 10+ years.

Somebody save us!

Mon, 12/02/2013 - 12:43 | Link to Comment Rainman
Rainman's picture

I gets all tingly looking at her.

Mon, 12/02/2013 - 12:55 | Link to Comment economics9698
economics9698's picture

Real tits.


Mon, 12/02/2013 - 12:56 | Link to Comment knukles
knukles's picture

She didn't grow those wet tits all by herself.

Mon, 12/02/2013 - 14:00 | Link to Comment gmrpeabody
gmrpeabody's picture

If you like your tits..., you can ,er..., nevermind. (didn't read far enough)

Mon, 12/02/2013 - 13:38 | Link to Comment Oldballplayer
Oldballplayer's picture

If you like those tits you can keep those tits. Or, you can look at government tits.

Mon, 12/02/2013 - 13:31 | Link to Comment El Oregonian
El Oregonian's picture

"I gets all tingly looking at her."

You mean you get all wet looking at her.

Mon, 12/02/2013 - 12:31 | Link to Comment ThisIsBob
ThisIsBob's picture


Mon, 12/02/2013 - 12:28 | Link to Comment insanelysane
insanelysane's picture

Must have taken some parts from the Treasury servers to fix the OCare servers over the weekend.

Mon, 12/02/2013 - 12:27 | Link to Comment Rainman
Rainman's picture

Like I keep sayin, it will be the machines that finally bring down this whole shitshow.

Mon, 12/02/2013 - 15:21 | Link to Comment garypaul
garypaul's picture

or at least they will be the excuse

Mon, 12/02/2013 - 12:29 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Uh-oh... Failure of Treasury Auction is trigger event for ultimate collapse, no?

Mon, 12/02/2013 - 13:06 | Link to Comment SilverDOG
SilverDOG's picture

Most certainly a warning shot.

One may now walk out the door, or wait for the sprint.

Mon, 12/02/2013 - 12:33 | Link to Comment Haager
Haager's picture

Ah, before they came in need to declare the auction a failure they'll say the system has failed. O.k., another day makes it another try. One question: Will it be over by end of week?

Mon, 12/02/2013 - 12:37 | Link to Comment Winston Churchill
Winston Churchill's picture

Is the PBOC refusing to roll over its short dated bills ?

As it no longer wants dollar reserves,it is the next logical step.

Mon, 12/02/2013 - 13:03 | Link to Comment Al Huxley
Al Huxley's picture

I wonder what Minitru will tell us on the day that finally happens.  Maybe some bullshit about technical issues forcing them to delay the audtion.

Mon, 12/02/2013 - 13:14 | Link to Comment Bindar Dundat
Bindar Dundat's picture

They announced that just last week. They converted all long term bonds during the "twist" Now they want cash and they are npo longer buying ANY bonds.   Timber.......

Mon, 12/02/2013 - 12:35 | Link to Comment tradewithdave
tradewithdave's picture


Because... Obama. 

Mon, 12/02/2013 - 12:38 | Link to Comment Quinvarius
Quinvarius's picture

Does the market really need any more supply on a day like this?

Mon, 12/02/2013 - 12:40 | Link to Comment Dr. Engali
Dr. Engali's picture

A bond market failure should be good for another 100 pts on the S&P.

Mon, 12/02/2013 - 12:45 | Link to Comment I am Jobe
I am Jobe's picture

Are these HPQ, or Dell Servers? Same shit Servers 

Mon, 12/02/2013 - 12:44 | Link to Comment barwar
Mon, 12/02/2013 - 12:48 | Link to Comment I am Jobe
I am Jobe's picture

LOL. I guess Brian Rogers needs to look for a new gig 

Mon, 12/02/2013 - 13:05 | Link to Comment knukles
knukles's picture

This isn't a failed auction.  Failed auction means that not enough bids were received.

Which actually did happen once before.
Back in the 70's
The Fed told everybody it was a pro rata award or rebid
Everybody rebid.
Auction cleared.

Mon, 12/02/2013 - 12:49 | Link to Comment Randoom Thought
Randoom Thought's picture

I don't suppose that people have noticed that they are systematically introducing instability into the internet. I suspect this is part of a longer term plan to get people to not expect the high level of performance that they once had taken for granted.

Mon, 12/02/2013 - 12:49 | Link to Comment El Hosel
El Hosel's picture

Glitchez ... Bitchez

Mon, 12/02/2013 - 13:23 | Link to Comment Atomizer
Atomizer's picture

Mortimer Duke: Turn those machines back on..

Mon, 12/02/2013 - 16:21 | Link to Comment Relentless
Relentless's picture

Not glitchez. They are patching with code designed to hide future market failures so that they can continue the illusion of normality while they help the big guys get themselves out of the hole.

Mon, 12/02/2013 - 12:50 | Link to Comment Sufiy
Sufiy's picture

The real reason is everybody buys Quarks now....


Bubbles Chronicles: Bill Still Is Pumping Quark vs Bitcoin - Collapse Is Near

 All world has gone mad: Bill Still is pumping Quark! Just watch this video and remember how the Bubble stage looks like and what are the arguments presented to buy something "which definitely will go up." We must be very close to the Bitcoin final parabolic rise before the Crash. If Bill Still can not withstand the plot to get fast rich scheme, what can we tell about the other people?   It is very interesting that Bill talks about another 30 crypto-currencies and there are at least 100 else are in existence. Why on Earth to buy Bitcoin at $1200 if you can buy "the better" Quark, which was pumped by Bill Still only to 4.5 cents by now (more then 2000% as Bill proudly has noted!?). Just Sell you Bitcoin now and move down the food chain - "it will be a sure thing: all crypto-currencies will go up once Chinese will be able to buy it, particularly after the Bitcoin will be Crashed."    It looks like we have found finally our own youth portion and will spread our bets evenly among all 100 crypto-currencies, with this kind of sure gains how can we lose anyway? Can you imaging if India will join this crazy feast, what about Malaysia? You can monitor some of those Crypto-Currencies here: Crypto-Currency Market Capitalisation. Junkcoin is not doing well - must be something with its name ... all others are "solid investments".   Can somebody tell Obama to put NSA to proper work finally? Just make the super duper NSAcoin with triple encryption, warranted from Spying and accepted for Tax payments and let Obama to Pump it a little bit ... 17 Trillion in Debt will be repaid very soon - at least we will have better roads and bridges. Can we get into this one as well at the start of Pumping?   And yes, who needs Gold and Silver any more, particularly, when it goes nowhere in price or even down compare to Quark as Bill is reporting? All that dirt, billions of investments - who are those silly people buying all that Gold any more

Mon, 12/02/2013 - 13:02 | Link to Comment BadDog
BadDog's picture

A lot of money came of nowhere to capitalize quark it would seem.  Wonder who that could be?

Mon, 12/02/2013 - 12:56 | Link to Comment Atomizer
Atomizer's picture

509 Bandwidth Limit Exceeded

They must be piggybacking ObamaCare on the the Treasury server.

Mon, 12/02/2013 - 13:01 | Link to Comment knukles
knukles's picture

I thought that Net Ludd warned the machines was gonna take over.
Not just break shit.

Mon, 12/02/2013 - 13:38 | Link to Comment Oldballplayer
Oldballplayer's picture

Glitch = cyber attack.

Should not have tossed Bebe under the bus.

Mon, 12/02/2013 - 13:50 | Link to Comment stant
stant's picture

somebody entered that 00000000 launch code just for shits and giggles

Mon, 12/02/2013 - 13:55 | Link to Comment ToNYC
ToNYC's picture

The printer's smoking at 33 Liberty, let it cool for a cold-boot.

Mon, 12/02/2013 - 14:26 | Link to Comment Legolas
Legolas's picture

Boy, they are smacking the metals down again.  Oil is up, though.  I feel like we're in the part where everything is reeling out of control.  Brace for impact everyone.

Mon, 12/02/2013 - 16:29 | Link to Comment DrunkenMonkey
DrunkenMonkey's picture

Perhaps the chinese revenge for the over-fly was a 2 week strike on bond-buying ?

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