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Foreign Central Banks Just Can't Get Enough Of Today's 10 Year Auction
After yesterday's 3 Year auction saw a blistering surge in Direct bidder demand (as a result of a substantial negative rate in repo), we were not at all surprised to see that today's 10 Year reopening auction of $21 billion was a likewise solid (even if tailing fractionally to the When Issued 2.232%) issue printing at 2.233% with 23.93% allotment, with the bid to cover rising from 2.58 to 2.64, the highest since September.
Yet despite the tiny tail, foreign demand in the form of Indirect Bids was superb, rising to 62%, which excluding October's 62.2% would make the Indirect takedown in today's reopening the highest since 2011.
And while foreign central bank demand was superb, perhaps the biggest reason why there was no big surprises in today's auction is that just like yesterday the 3-year and 10-year note had traded special through this week's auctions as can be seen in the chart below, which shows that the 10Y was -0.50% coming into the auction and suggests that like yesterday there was an element of covering shorts into the primary issuance.
Overall, for the last 10 Year auction supposedly before the Fed's first rate hike in 9 years, the action was decidedly calm and collected, and may be hinting that the Fed just may change its mind in the next 7 days.
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further evidence there is no growth on planet earth and the prospects for future growth is even lower. when central banks are playing leapfrog over each-other for 2.00-2.50%, u know theres a problem. don't have to look further than their involvement in these treasury auctions to answer the question "what do they know that we don't?"
They know stocks will tread water or fall while rates go negative in the near future. Inflation will persist, currency will devalue, and the frogs will boil.
Low/Negative interest rates and corporate subsities have stolen growth from the future.
We have been living a giant "Cash for Clunker" world. Time to pay the piper...
This is how the NWO oligarch ponzi fiat scheme works. Each bank buys the others garbage & shit - repeat - print - more debt etc.
yeah--the real question is why central banks are buying marketable securitiues in the first place.
The bonds support the fiat ponzi as the basis for collateral. The dollars trade on market while the debt collects dust. The increasing debt/currency weakens the real payout. This is why the richest men in the world are buying arable land and picassos - they know when the levee breaks there will be no place to hide exept finite goods, and the collapse will be a burden of the taxpayer, the serf of the State..
As I stated many times, there will be continuing STRONG demand for US treasuries
AND
prices will go MUCH HIGHER again
meaning BIG profits for those who own them in advance :-))
Even when Yellen is promising a raise. Everyone must know she is lying; the Fed will never raise rates.
I think it doesn't make any difference whether foreign CBs buy your debt or your own CB does it.
When you reach the stage of only CB buying treasuries, you are nearing the hyperinflation stage, because you will have to turn over your national debt with entirely-created fiat.
If $1T / year of created $ produces 10% inflation, what will $5T / year do?
https://thinkpatriot.wordpress.com/2015/11/11/dynamics-of-national-colla...
https://thinkpatriot.wordpress.com/2015/10/27/ignoring-the-absolutely-in...
And anyone who wants you to believe that they think that means 'strong demand for US treasuries' is selling them, not buying.
Why don`t you report the FED loaning the foriegn central bank the payola to buy T-bills?.......Money laundering at its best.......
and primary dealers at the barrell of a gun who bought all of the UST China dumped over the summer. Can't wait for this fucking shitpile to implode so we can get on with the new dollar