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Tailing 2 Year Auction Prices At Lowest Yield, Highest Bid To Cover Since February
Today's 2 Year auction was not expected to be exciting, and it wasn't. Pricing at 0.392%, the auction tailed the 0.39% When Issued by 0.2 bps - the first tail since June - but was well below last month's 0.447%, and the lowest yield since February's 0.34%. The flipside is that the Bid to Cover of 3.519, higher than last month's 3.345 was also the highest since February's 3.605, and well above the TTM average of 3.29. It appears the trend of declining BTCs has finally broken. The internals were perhaps a little more exciting: Directs took down 25.23%, above the 18.96% last month, and the highest in 2014, above the 21.3% TTM average. Alternatively, indirects were left with 18.86%, below the 23.36%, and certainly well below the 40.93% from March, making the number the lowest Indirect takedown since January of 2013. The remaining 55.91% went to the Dealers, which was just a tad below the 57.7% from April, if above the 51.1% TTM average.
Summarizing the auction, there is hardly much if any fear that the "dots" will shoot up to 4% some time in 2016 when the bond matures and those who bought at auction today are left underwater.
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and Gold continues to get monkey-hammered.
Gold doesn't pay a dividend or interest paper. Why have gold when you can get a whopping .35% from the healthiest, most stable institution on the planet?
Its really stupid even i u believe their claims of 2% inflation. This means you are actually losing 1.65% of your investment as soon as u pull the trigger
Deflation could happen. I don't know. But, these things usually end in hyperinflation, even if deflation comes first. (Treasuries are great in a deflation)
I don't trust these markets. While always murky to me, I trust them less and less each month.
"Deflation could happen." - Well I wish it would hurry up already the cost of food, fuel, education, and healthcare for my family is killing me. You mean my dollars might actually have more purchasing power? That would be far too good to be true, hence, it will not happen.
Here's a link I just saw at Drudge, a list of this year's Bilderbergers. An article follows the list, apparently The Elites are worried about losing a "Unipolar World"...
http://www.infowars.com/official-bilderberg-2014-membership-list-released/
The fed doesnt give a shit about employment evidenced by zirp. Zirp gives employers no incentive to grow domestic workforce. Policy has to come from washington yet they act powerless. The fed CANT hike rates. Velocity will exacerbate inflation. We are fucked
Stocks are manipulated.
Bonds are manipulated.
Gold is manipulated.
Interest rates are fake.
"Money" has no value anymore.
"The Recovery" doesn't exist.
"The market" is The Truman Show.
Inflation is raging away.
What happens to a pervasively fraudulent economy when the pressure to normalize, to return to a free market, has been so suppressed for years? It won't be higher interest rates. (They're well under control.) It won't be bankruptcies. (Print and loan more at 0%.) Etc.
A bit like trying to hold a balloon under water.
Something else, something unexpected, will explode...like the rivets in a high-pressure steam boiler: you never know which one will go first.
BRING IT ON!