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Strong 30 Year Auction Ends This Week's Treasury Issuance
If yesterday's tailing 10 Year auction left people concerned that today's final for the week 30 Year bond issuance would be weak, then the results put that promptly to rest, after the $13 billion reopening of Cusip RH3 priced at 3.24%, pricing 2.3 bps through the 3.263% When Issued. Furthermore, the Bid to Cover if 2.67 was above the August 2.60, well above the TTM average of 2.40, and the second highest of 2014, second only to June's 2.69. The internals were very solid as well, with Directs taking down 21.8%, above the 16.8% average, Indirects holding 45.5%, in line with last month and above the TTM average of 43.4%, and Dealers left with 32.8% of the paper which they can quickly flip back to the Fed for the next 6 or so weeks until QE ends (before it has to resume once again of course).
Altogether a very strong auction, as can be seen by the reaction across the curve, and justifying the Fed's worst fears that instead of steepening the yield curve, all the Fed's intervention is doing is sending even more recessionary signals as the curve goes every flatter.
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Gotta have FIATH!
2 things to consider:
Fixed Income markets usually "know" more about the direction of the economy than equities do.
Spanish debt lower yielding than UST, Bund through 1% => bid for "safer" UST with higher yield. Not a surprise.
Flight Capital; the Euro is going in the toilet.
So who was buying? Let me guess....
Sorry, just me firing at ma MyRA account with both barrels.
oh goodie more debt purchassed with debt coupon dollars created out of nothingness......
i should probably sell my physical Gold and Silver ....
not a fucking chance bitchez...
Apmex csllin' - gotta go now....
I refuse to make a 30 year bet on anything, most especially there being a USA in thrty years.
You really doubt that the IMF will print enough SDRs to make good on the promise?
Idiotic Mother Fuckers???
The plastic figureheads spewing sound-bytes, for sure. The true operatives in the background though, are more likely "Inebriated Mother Fuckers," being drunk on their pure power.
Time will tell if they manage to pull off "Invincible."
the only thing making GLD holders look like anything but shmucks are SLV holders.
pair of dopes.
I resemble that remark.
That's because they are both Bankster paper ridden frauds, and people who understand this avoid them like the plague.
Frauds? With custodians like JPM and GS?
Let's show our appreciation to today's newborns because they just loaned us their money.
Its amazing that there is such demand for that paper. There are financials out there that are willing to lock in stupidity (low yields/high risk) rather than deploy their assets in a more productive manner. Just makes me want to go and empty my bank account, cancel my insurance, cash out of my equities.....Basically take my ball and go home. Its all become so dangerous to play in that court.
Why are they locked in? You can sell next week for a very nice gain.
Rinse and repeat.
It isn't real demand though. It's just a printing press gone wild. My guess is that the William Dudley is pulling all the levers over at the NYFED with these "auctions". Strong? LOL...what bullshit.
Thing is, thanks to Greenspan/Bernanke/Yellen's Magic Checkbook, there are no longer ANY productive opportunities, as ALL sustainable demand has been pulled forward. The only thing left is capital consumption, either via malinvestment that cannot pay-off, or financialization as corps turn to monetization of their perceived value.
You might think only fools would go for low yields, but when the future is ZIRP/NIRP their only other choice is to cease operations.
And... all the buyers end the day facialled....