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Treasury Concludes Weekly Issuance With Poor 30 Year Bond Auction
If yesterday's slightly tailing 10 Year auction was a non-event, today's $16 billion 30 Year refunding was one of the uglier long-end auctions in a while, which perhaps is to be expected in a world in which the Fed is, for the time being, no longer monetizing Treasurys and Dealers no longer have the option to turn around and flip the paper back to the Fed on a whim, and with guaranteed profit.
The highlights: printing at a high yield of 3.092%, this was a notable 1.7 bps tail to the 3.075 When Issued, and certainly wider than last month's 3.074% yield. Keep in mind yesterday's 10 Year priced inside of the October 10Y auction.
The Bid to Cover was also nothing to write home about, and at 2.292 it was the lowest since May's 2.09%, as well as below the TTM average 2.44%.
The internals showed that Direct interest tumbled to only 13.8%, the lowest since July, and with Indirects also taking the least since May, it meant Dealers were stuck holding 42.5% of the auction or the most since May's 51.2%.
So is it time to start whispering QE yet? Or is it only stock market weakness that brings Bullard out of hibernation, because somehow, the Fed believes that with a freefall in the US rates market stocks can still continiue to keep going higher?
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Need to close Belgian whore houses on wensdays
interest rates will be going lower ... A LOT lower
Yup.
Long guy's up 17 ticks. Sure looks like a weak auction to me.
Get 'wm while there's stil;l some yield left.
Don't gotta go to Japan because it's here, now!
fake market
The past 6(?) auctions this week and 2 weeks ago Rick Santelli has been giving grades of C- or worse.
Just say-in'
Walmart reported today ... comparable sales for quarter +0.5% (last guidance was for flat) ... BUT in 2013 quarter ended oct 25th ... this year oct 31st ... no doubt halloween drove "improvement"
and King Dollar rearing its head
"This quarter included the negative impact of approximately $396 million from currency exchange rate fluctuations."
($696 million Q2)
rising rates will kill what is left of housing
yesterday MBA out with weekly mortgage application survey index ... purchase portion down 11% year over year ... and if you go to corresponding week in 2013 ... you'll find that week down 6% year over year (2012)
Treasury yields are set to pull back slightly, but the long-term trend is up... way up.
http://www.globaldeflationnews.com/10-yr-us-treasury-yieldelliott-wave-u...
With a $4.2 trillion dollar balance sheet and no reverse repo, the Fed aboslutely continues to monetize since the bonds they turnover are just as fake as the money they used to buy them with.