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Treasury Completes Weekly Auction Trio With Solid Demand For 30 Year Paper
Following two stellar auctions earlier this week, when both the 3 and 10 Year showed substantial demand, and in the case of the latter a near record surge in foreign central bank takedown, today's final 30Year auction went without a glitch as the Treasury sold $13 billion in the RN0 reopening, which priced at 2.914%, through the When Issued 2.917%, lower than the 2.98% in September, and virtually unchanged from the yield the 30Y paid at the last auction of 2014. In other words, just like stocks, so the long end of the curve has gone exactly nowhere in 2015.
The Bid to Cover of 2.46 was weaker than last month's 2.536 if better than the TTM average, following some notable weakness in the first 5 auctions of the year. The internals however were solid, with Indirects taking down 56.4%, well above the average of just above 50%, while Directs took down 15.5%, the highest in 2015. This left 28.1% to the Dealers, about 7% below their TTM average.
Finally, the real reason why today's auction is important is that in the aftermath of the latest tumultuous developments in the GOP, suddenly the fate of the US debt ceiling is very much uncertain: without a deal there suddenly the future of bond yields is in limbo especially if the US government enters the first week of November without a deal and with just $2 billion in emergency funding left.
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i wonder who would be buyin all that worthless shit????
Speculators, because sane people know you can't predict 30 years out. Hell, just look at the last 30 years....
You seem to be an investing expert, please explain how treasury bonds are as you say "worthless shit" ?
If you have any savings of your own to invest, please explain what you are investing in and how that is better than treasuries.
Thanks
Everyone keeps saying bonds are going to implode, all the de-dollarization talk, etc. And all this time, on the surface, they have been all wrong. The central planners have held it together with magic and crime. And what is going to come along to change this? What is going to be big and powerful enough to overcome the mighty central planners? Some 3rd world shithole BRICS? I call bullshit on that one. Hasn't happened. Aint gonna happen. I don't necessarily like it or agree with it, in fact I hate it - but it is what it is and it is going to persist for a long time, longer that anyone reading this lives. Rome didn't get built in a day nor did it fall in a day.
Bonds will not implode, its a global fiat world/ponzi now. Bonds, like all fiat will simply become less relevant.
Whew. And here I was worried things weren't going to turn out okay..
"...with Indirects taking down 56.4%, well above the average of just above 50%,"
"Indirect bidders, a class of investors that includes Foreign Central Banks..." (Snippet from a Bloomberg piece in May of this year)
Which sorta coincides with a piece from Uncle Jim from May of this year:
http://news.goldseek.com/GoldenJackass/1432843200.php
Makes one wonder what is really going on with all this 'valuable' paper...?