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Bond Buyers Spooked By Imminent FOMC, Lead To Tailing 5 Year Auction, Lowest Bid To Cover Since July 2009
A Treasury auction an hour before the Fed is set to announce the end of the latest (if not last) iteration of QE may not have seemed like the best idea, and sure enough moments ago the Treasury sold $35 billion in 5 Year paper in what can be described as a miserable auction, when the 1.567% high yield tailed by 1.5 bps to the 1.552% When Issued. Not only that but the Bid to Cover tumbled from 2.56 to just 2.36: this was the lowest BTC since July 2009 when it actually had a 1-handle. Finally, the less exciting internals showed that Directs were largely in line with recent auctions, taking down 10.5% of the auction, above the TTM average of 13.5%, as Indirects bought just less than half or 47.8%, leaving Dealers with 41.7% of the final allotment, slightly above the 39.3% 12 month average.
And now, the Fed, which is doing everything in its power to bring bond yields higher but gradually and not with the volatility seen on October 15, knows that all it needs to get a disappointing auction is to have a Fed meeting just one hour later.
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in prior QEs ... when the "end" drew near ... yields went up (i'm sooo scared) ... only to fall afterwards
$4.5 trillion balance sheet. And let's tell em what they won Bob! Oh my! It's a great economy! Come on down!
Disclaimer: This economy is not an actual great economy. The federal reserve can and will not be held accountable for any actions taken.
are they at the conference call to Goldman part of the meeting?
"bond buyers"... LOL!
I know the internals of these bond auctions are like porn to the Econ Geeks and Fed watchers, but wake me up when one of these bitchez fails, otherwise were talking filler here, pure fluff!
if dealers are stuck buying this junk, and they cant sell it to the Fed anymore, how can they naked sell vix calls until their balls are blue as the sky?
santelli gave this one a D-
funniest story i came across all day:
Kerry wants Keystone pipeline decision 'sooner rather than later'
http://www.reuters.com/article/2014/10/29/us-canada-keystone-kerry-idUSK...
im just at a complete loss on this one. he wants his boss/cabinet to move quicker on a decision they've been sitting on for 5 years? guess that $100 million donor out on the west coast has nothing to do with the fact that the decision isn't being "made" until after the midterms.
can't some computer programmer create and algo that can completely take place of all government similar to the way the super-computer operated in the movie "eagle eye"? just make all decisions across 50 states based on what the algo pops-out. these guys can't seem to slam-down the simplest of lay-ups.