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Despite Broken Stock Market, Strong 10 Year Treasury Auction Prices Without A Glitch
The US stock market may be in shambles and the Mahwah Stock Exchange is offline for nearly 2 hours now, but that had no impact on demand for US paper, in fact moments ago the US Treasury just sold $21 billion in 10 Year paper without a single hitch. With a When Issued of 2.233%, the bond priced 0.8% through at 2.225% showing that when one can't buy anything else, one buys what one can, in this case 10 Year paper.
The internals were solid, with a 2.72 Bid To Cover, above the 2.67 TTM average, Indirects getting 58.1% of the auction, and Directs holding 12.1%, leaving Dealers with 29.8% of the take down - all in line with recent averages.
All in all a very solid auction, and perhaps the biggest surprise was that the repo in the 10Y ahead of the auction this morning was 0.00%, the first non-negative print in many months, suggesting that not even shorts had to be slammed into today's action.
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Makes sense. Right now, with world markets about to melt down, US Paper is secure. Maybe not for ever, but at this moment in time, having US paper beats being in markets you can't even trade.
What value is the fiat paper that can't reach a market? 0.
In the end, fiat is worthless asswipe. But for now, it still buys heroin, whores, vodka and trips to Europe. So I am all in.
For a little while longer until it doesn't.
US Paper, with fundamentals worse than Greece, who would not want to own that shit. Gold is for pussies/sarc
Kind of hard to have a problem that the same people selling them are the same people buying them. The bunch of them are all probably all sitting in the same room.
So the fed's computer ins't broken....
Of course there were no glitches. The one and only thing our guv is good at, is pissing away fiat money we don't and will never have.
FED has direct fiber lines from their software applications to the Treasury.
Fill out a fucking form if they need to.
Global markets have for all intents and purposes collapsed.
Interesting that folks are panic buying "Fukushima Japan" though...the biggest polluter in human history.
"Death of Capitalism itself" near as I can tell.
Here is the big question we face as China has broken and the EU is about to break, "what can the Central Bankers do?" Stock Market bubbles have been the last stimulus resort of Central Banks. They have ruthlessly pumped equity share prices everywhere across the Western and Chinese sphere. Central Banker balance sheets are very ugly and overloaded with shit, they bought all the shit to relieve banks of it, so what can the Central Bankers do to rescue their equity bubbles?
All things must return to the mean and rationality. The more they pump or "stimulate" the worse the correction.
Years ago we had some lively debate in my economics club about the "real" market and the financial markets which includes Fed and central bank manipulations. There is a real market with real demands, real values and real prices. As governments intervene...endlessly these days all those things get lost, inflated, deflated and essentially masked. When they are unmasked it is called a crash. We are better off in a rational world trading the real value of things but governments and the arrogant elitists we elect cannot not ever, never, no-way leave shit alone.
Open your MyRa today bitchez! Nothing says security like a U.S treasury, and you don't have to worry about all those pesky "market" glitches.
"Gold" in the back yard, about 10' down, is looking attractive right now.
If this is the beginning of a collapse, then we are going to see a crisis of epic scale. We all know how central banks and regular banks have been playing with the world fiscal system and markets.
I am just betting the Central Banks are out of ammunition, and are shooting blanks right now. Markets are so over bought, to plunge to a real price discovery level would take us to lows nobody dreamed of. For 8 years the Central Bankers have feed wealth to the 1% via pumping market bubbles. We all know who owns most equity shares, and these share holders have been direct recipients of Central Bank printed money.
This action is going to throw New York and London high end Real Estate into a major crisis! Right now, were I holding a London property, I would be ordering it on market and with a mark down to attract immediate attention in the last fools out there. New York has seen dozens upon dozens of massive condo devlopments reaching into the skies trying to grab a view of Central Park. These developments are probably going to bankrupt the developers and their investors.
Jack, you damn well nailed it. It is hard to call an economic apocalypse but we know this is the way they start. In an electronic micro-second trading world they crash, fast, hard and connected to everything else.
Remember, we have honest-to-God idiots along with people who sincerely believe in the wrong economic religion (Keynes) in charge.
Well since BofA (.gov) was the ones screaming the loudest how bad the Chinese Crash was getting and now what kinda looks like retailiatory cyber attacks:; If the paper trail comes out that the US was in fact behind this, congratulations idiots, you just started WWIII with your largest bond holder.
Might ought to get ready for some extreme " Irrational Exuberance" congratulations you dunder heads.
As for Me?
"Well thet stomped and they burned and they burned and they stomped till all our flowers was gone. But we just smiled and waved at them, sitting on that sack of seeds." The Wildwood Flower-- Cat Stevens
What is the difference between Caribbean banking centers and Indirect bidders...? Am I out in left field...?
Makes Sense???
Sure it does . . .
The FED IS STILL BUYING.
stock markets for the chumps, Debt market is where the big boyz swim. But the declines coming to a debt market near you farking soon.
Of course there is no Hitch, only the muppets and gun point occupied nations are buying this worthless toilet paper.
I'd say that the 10 year US Bond is as safe as cash lease farmland and then a bit (0.5%).. corn at $4 local and all that.