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Strong 10 Year Auction Prices At Lowest Yield Since June 2013
And so the flattening, and the "inexplicable" (Chinese and Japanese) bid for Treasurys continues. After yesterday saw 3 Year paper selling at a better than expected rate, if still at the highest yield since 2011, today it was the turn of 10 year paper to sell briskly, with the high yield of 2.612% once again pricing through the When Issued 2.618%, although in a mirror image of the short end, this was the lowest yield since June of 2013. The bid to cover came at 2.66, modestly below April's 2.76 and on top of the TTM average of 2.63. However, the internals were more curious with Dealers getting just 29.1%, matching their take down from March, and the lowest since March 2013. This meant Indirects were left with 49.3%, well above last month's 44.7%, and above the 43.9% TTM average, highest since the 49.7% in February. Directs were left holding 21.6% of the auction, above the 17.7% average.
All in all, another strong auction as the Treasury curve continues to not comply with either the Fed's or the sellside's demands that it finally sell off to "telegraph" a stronger economy and coming inflation. Thank you unintended consequences of central planning.
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Belgium is killing it..can't get enough of our trash.
If treasuries are trash, then what does that make almost every other asset class out there?
high quality collateral??? /s sorry, I got nothing...
full faith and credit bitchez...
should say c.b.'s with swap lines bid yields lowest since 2013
You got to be kidding me.....
Senate Introduces Bill To Tax Drivers By The Mile
http://survivalbackpack.us/senate-introduces-bill-tax-drivers-mile/
How dare drivers steal from the government by driving more fuel efficient cars!
Besides, it's not like we really need commerce anyway, right?
Ha Ha Prius, Leaf and Volt drivers the tax goons are out to empty your wallet.
fwiw...college just got more expensive
NEW YORK (MarketWatch) -- Interest rates on federal Stafford student loans will rise to 4.66% for undergraduate students next year from 3.86% in the prior year. The interest rate is pegged annually to an auction of 10-year Treasury notes /quotes/zigman/4868283/delayed 10_YEAR -0.54% , which sold at a yield of 2.61% on Wednesday. The interest rate for graduate students will rise to 6.21% next year from 5.41% in the current year. Federal student loans were first pegged to Treasury auctions last year.
Just recall GM and how 'safe' those bondholders were when the shit gets real.
The back and forth sure is dull.
Just be happy that the "Muddle-Through" is still working.
Otherwise, it gets ugly real fast.
...very, very, very dull.
Treasuries are a rock solid investment. In uncertain times smart investors rotate into treasuries and batten down the hatches. I'm putting everything I can into my MyRA. Feels good knowing I can count on that 3% yield and shift my focus to my hobbies and take the summer off.
One huge PhD Central Bankster Circle-Jerk.
Belgium buys US debt, US buys Belgium debt, Japan buys US debt, Japan buys Belgium debt, US buys Japanese debt and Belgium buy Japanese debt.
Keep the Keynesian sham going.
God bless Viagra!
Large cap stocks, bonds, oil, and dollar all up; vix futures, vvix, softs, and metals getting crushed.
The vix trading at multi year lows says there is basically no risk to the downside and VVIX making new lifetime lows confirms. Therefore panic buying the fucking all time highs in DOW and S&P stocks is the best play on the board....
Next stop the moon.
VIX is non material. It serves no purpose except for sell side fodder.
Much like, or exactly like the ECRI indicator, both of which are as useless as tits on a boar hog.
aint nobody buying that shit paper...
LYIING MOTHER FUCKERS!
Treasuries are not rock solid.
But as long as there is a functioning civilization, they are the best configuration that exists. It's not the Fed arranging this; it's every single CB in the world doing it.
They must. If USTs fall, the world falls apart, including their particular part of it.
Stop thinking anything monetary can take the system down. The entire network of CBs is fighting that. It's a doomed fight, but money won't be the doom.
Oil will.
wonder if they even have a real auction
No real way to tell at this point. All one can say is direct=Primary Dealers=The Fed. "Indirects" might give you some idea of "external demand".
Greenspan got it right. There is a flight to the US dollar because the US has the most gold (suposedly).