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Blistering Demand For 2 Year Paper Send Entire Curve Tighter
If the sellside community was expected to side with the Fed and sell Treasury paper, especially near maturities, then today's 2 Year auction, which just priced at a hot 0.542%, or 1.1 bps through the 0.553% When Issued, indicating more than ample demand for Treasury paper. Further confirming the demand was the surging Bid to Cover, which at 3.714 was the highest of 2014, and the most since December's 3.767.The internals too showed demand across all buyer classes, with Directs taking down 16.2%, Indirects getting 35.83% of the auction and Dealers left with 48%, or just a fraction below the 12 month average.
Altogether, a solid auction, which saw the entire treasury curve jerk 2 bps tighter once the results were announced.
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need moar paper.. need a 60-100 year bond..
http://hedgeaccordingly.com/2014/11/son-of-a-close-aide-north-korean-stu...
It's okay. After all, "we owe it to ourselves."
yep like one big 401K loan
Yeah but the problem is
WE CAN'T PAY IT BACK!
Duh.
apparently we just take another 401K loan... Might get hairy when we go From 401k quality to Pay day lender qaulity roll overs
might as well be selling iou's from zimbabwe
ponzipollopa...
run!
I'm I reading this correctly? -1% yield?
but but all the "experts" are certain FR will raise next year
Jesuz, who - and I'm asking seriously - I learn something just about everyday from an article or comment or link here.
Who is buying treasuries, apart from banks getting free cash at the window and turning around that paper to get better interest [used to piss me off, but apparently you can't get the government or public to care about even rampant, ostentatious fuckery like that].
Why on earth would you buy even 2 year versus, sure okay, gold, or equities or even bonds? Real estate if you could.
I just don't get it - I mean no I dont think the dollar will collapse in 2 years, but I do think inflation will more than eat up any profit, plus the lost time value -
why not a cd or money market? PArdon my ignorance {and - is part of it banks working with the Fed to prop up this absurd market - and if so, how much - like, who are the other people}?
most of these buyers are institutional 401k ect... the idea is that they need to have constant performence each quarter. with tthe introduction of QE the issuance of bonds is really pointless. but joe sixpack doesnt know that yet.
i think much is foreign capital
US target of carry trades
with other countries "printing" (or soon to be) usd getting stronger. Invites capital inflows which floats all (US) asset classes. Buying not so much for interest on 2yr paper, but for usd appreciation
Anywhere but Japan seems reasonable for Japan, and the ECB charges to hold on to currency.
Remember October 15? You could have made 5% on a 5 year Treasury in about 5 minutes. Guys who go long treasuries are the
ultimate bears, not unlike the ZH populace. Some are even stackers, as well.
Personally, I wouldn't be surprised if Mr. Magoo owns little of anything but treasuries but also stacks in his own Scrooge McDuck-type vault.
Wow, the shitshow goes on, I'm so shocked.
LOL, the Federal Reserve PhDs are trapped into easy money until the dollar crashes.
http://www.marketwatch.com/story/the-fed-has-boxed-us-into-a-tough-easy-...