30 Year $13 Billion Reopening Prices At Record Low Yield, Highest Bid To Cover In 11 Years

Tyler Durden's picture

The scramble to Uncle Sam's paper of last resort continues, when in the aftermath of yesterday's Triple Double (second Highest Bid To Cover and Indirect take down, and second lowest Yield ever), we saw a Bid To Cover of 3.04 for today's 29 Year 11 month reopening, which was the highest since 2000, and a record low yield of 2.925%, 3 bps inside of the When Issued. The only rain in this parade was the Indirect Bidder take down which was a modest 32.5%, compared to an LTM average of 36%, while Dealers took down 46.3% and the remainder, or a sizable 21.2% going to Directs. Considering the pervasive sell off in risk and all liquid assets, it is not surprising that cash had to parked somewhere, and today it was in the place where the monetization circuitry still works. When Europe finally tumbles and the bond vigilantes have no other targets left, we may have to revisit, but today the world's cash strapped investors have just one place to park their cash equivalents: congressional pork, because naturally the auction result gives Congress a green light to do lots of future fiscal stupidity.

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Captain Kink's picture

Zeroes, Bitchez!


nope-1004's picture

It's all coming together as planned.  Starve the economy, downgrade EU, flight to USD, supress PM's.... then more QE is palpable.


Chief KnocAHoma's picture

This is HOT WHORE MONEY. It will leave the USA as fast as it arrived.

Just like every whore I have ever known, this money is constantly looking for a better wrung to climb.

dwdollar's picture

Here one microsecond, gone the next.

Hansel's picture

That's what capital controls are for.

CClarity's picture

Capital controls will be coming soon enough.  While I expect it will be Greece first, after they leave the Euro, it could be the USofA.  Not letting those Chinese take their money back, or all the European fleeing depositors?  That would truly mark a very ugly historical moment.

LawsofPhysics's picture

Right, better define what you mean by capital controls first.  I can think of a lot of different capital controls and most are not good.

Chief KnocAHoma's picture

Plus people are now scared shitless to put their money in a brokerage account. It ain't safe there while that bitch Corzine is still on the street.

Hmm...'s picture


but this seems to be a bucking bronco of a fiasco...

I don't really get the picture of a bunch of brilliant technocrats tanking the Global Economy in a genius but evil plan...

Instead I get the picture of a horde of sheep trapped in a burning barn... bleating as they run to and fro but flames fall in front of each door, each escape.  There is one door that is still open (USD) but that door is rapidly heating up as well and little do the sheep know but that door also only goes towards doom

The sheep, starting to recognize this, are pushing the weaker sheep into the flames with an attempt to build a sheep-bridge that they can walk over to get out to safety...  (not realizing that it won't work).

there is no way out.  There is another door (gold/silver) that may allow a few sheep out, although jumping through it will also cause massive burns.  But those sheep might live.  The problem is that all the other sheep running to and fro can mess with the timing of jumping through the PM door.  if the escaping PM sheep mistimes, they may be burned and dragged down with all the other sheep.

Grim.  but it looks like at this point the only two minor chances to make it out semi-alive might be the USD door and the PM door... at least until the USD door collapses upon itself in a fiery inferno.

The Central Banks are clearly trying to time when to print.  But not because they are the masters... it's because they know they only have one shot to possibly make a difference.  It's ironic, because in the end this is exactly why Central Banks were created... but their creation is partly what allowed this to occur in the first place.

(these types of crises occurred prior to central banks, although not globally...  thus CB creation is important but not mandatory for credit crises... fractional reserve lending is mandatory for credit crises, and CBs enable this to a greater extent.)

LawsofPhysics's picture

"It's all coming together as planned.  Starve the economy, downgrade EU, flight to USD, supress PM's.... then more QE is palpable."

Right, and when the physical delivery of goods and services is no longer possible?  Then what?  Yeah, I worry about supply chain disruptions.  If the folks that deliver these goods and services can't make a living because of capital controls, watch out, that is when the real bribery and corruption will start.  Physical will be very useful in this environment.

Mr.Kowalski's picture

Lots of European bids today I'd imagine. 

johngaltfla's picture

Or ChiComs looking to buy something to sell back to the Feds or Bill Gross for a profit.

Snakeeyes's picture

Euro is going to fail and $$$ flows to US. No surprise.

Will include in my oral testimony for tomorrow.


firstdivision's picture

Yet equities seem oblivious to this.  Some DC front running?

Manthong's picture

SPX at 1212...

Didn't get the memo yet?

hugovanderbubble's picture



transaccountin's picture

Sheep rather be in fiat paper than gold, ROFL. Oh man thats just silly. Whens the next dollar dilution coming?

Caviar Emptor's picture

10 year yield? 2.9%

Annualized CPI inflation? 3.5%


sabra1's picture

so, once all the fish are in the same net, you pull it up! up! up!

Tsar Pointless's picture


I know there is ongoing debate about where the "market" is headed, but I think it topped last Wednesday, December 7, 2011 - a date that will live in infamy. Or is that phrase taken?

Wave 3 down has commenced. Those banking on the "Santa Rally" are going to be ho-ho-homeless for the holidays.

I think the S&P will sell off rapidly next week, and make it down to the lower 1100s - around 1120 - by December 28. Then a modest two-week rally to the upper-1100s, then the fun really starts in Wave 3 of 5 of 3 of C down. Target: 550 by early March.

2012: The End of the World as We Know It. Very few of us will feel fine.

Spastica Rex's picture

Target: 550 by early March.

Now that is balls.

LongBallsShortBrains's picture

Twiwgts (that's what I was going to say fyrtdk(for you retards that don't know))

TruthInSunshine's picture

Rumor Mongering & Reality grappling with each other in the ultimate steel cage death match.

Which contender will ultimately prevail as the winner, surviving to win the title, and which one will fade into the ashbin of history as just another trash talker.

Stay tuned...


*History holds a strong clue (some would say it's infallible).

f16hoser's picture

You realize the COMEX almost defaulted on it's Bullion deliveries. Flight to the US will include flight to PM's. BTFD's




Manthong's picture

You know Sprott's gotta' be sitting behind an embankment waiting for the dust to settle on the battlefield here in the next 60 days or so.

If I were him I would already have most of that next billion committed directly to the suppliers (many of whom he already has equity in).

Then I would finish off the COMEX with orders they cannot possibly deliver.

Might have been an ulterior motive for him advocating that suppliers keep inventory instead of cash.

Eric couldn't possibly be THAT devious, could he?


Caviar Emptor's picture

Gasoline pump prices: dropping

November retail sales: big miss, lower than October (despite 'Black Friday')

Demand collapsing. That's deflation. (One healthy economy!)

SheepDog-One's picture

When no one has any money, their 'price stability' mandate is out the window.

Aunty Christ's picture

I highly doubt that anyone parks their cash in 30 year T-Bonds...the dv/01 is too penal

unionbroker's picture

there is endless money to be printed and endless rumors to circulate .

walküre's picture

Food Stamps are covered for the next few months. Phew.

Hansel's picture

That foreign swap line money has to go somewhere.  The Fed gives to ECB and BOJ, then they give that money to their banks, then what?  Buy one of the only assets that contributes 0% to risk-weighted assets, get that Tier 1 ratio up.

slewie the pi-rat's picture



well,...isn't that SPECIAL???

only the primary dealers know, for sure;  what's left of them

just sayin, wasn't this the "end" that the benzelbub was gonna "buy"

OT: it looks like the hot money is flowing into protein

soybeans are clinging to the $11 handle & live cattle is green!

but...Will You Still Love Me Tomorrow - YouTube

mogul rider's picture

where's the dollar haters lately.


deflationary spiral bitchex

spartan117's picture

We're busy buying "stuff" with our dollars.

Gringo Viejo's picture

Interesting to see how long this "pleasant fiction" holds up.

NotApplicable's picture

It will last just as long as someone is willing to accept dollars for payment of goods and services. The instant the answer is "no," is the instant the dollar dies.

Until that time though, we will see ZIRP4EVA, and the yield curve will get flatter and flatter, until they can totally eliminate the cost of debt service (and its dependent banking system that relies on that revenue).

The only banks to survive will be the politically connected, who will front-run every gov action while collecting processing fees for their trouble.

Can they pull it off? Doubtful, but they'll break everything they can trying.

Grand Supercycle's picture

SP500 daily chart resumes choppy downtrend. Opposite for USDX.

My long term indicators have continued to warn of USD strength and EURO weakness and these signals have increased since 2009. The overdue dollar rally should be substantial.


SheepDog-One's picture

And disastrous for the only thing that really matters, stock prices.

No one cares about bonds, no one knows what they are...same for 'currency pairs'...huh? People on the drive home want to hear 'And the DOW was up +100 today'...and therefore all is well with the economy. 

Tsar Pointless's picture

The road ahead is clear to those of us who haven't been smoking hopium for the past three years.

Not that I haven't been smoking other things in that time period, but that's neither here nor there, though it is hip to be square. LOL

King Dollar returns, bondzilla awakens, Chairman Ben whirls into action and helicopter-drops us to death beginning in March 2011, oddly this leads to further dollar strengthening in long run, S&P continues its trek back to its long-term trend area - that being, the lower-100s. Yes - that is "hundreds" not "thousands".

The end of the Fed is coming. It'll be here in precisely 373 days.

Be patient, my kittens.

Tinfoil is the new normal.

CrashisOptimistic's picture

Deflation, thy name is oversubscribed auctions.

Kaiser Sousa's picture

yeah, thats the ticket...

give me some mo peices of shit paper denominated n them green pieces of worthless shit paper so i can protect myself against them other pieces of shit paper them damn foreigners got over there...



ActionFive's picture

These auction stories used to get alot of attention. That is a story itself. 

FranSix's picture

if Operation Twist were really a success, then you wouldn't have negative nominal rates at the short term end of the yield curve.  Inflation is being directed into the longest term, whereas the clear emphasis in the money market is on the shortest term paper.


So far what has transpired is the focus on Eurozone problems while problems in North America actually deepen.  They didn't have an MF Global in Europe just yet.

So the flogging of long term U.S. debt appears successful, though a drop in the U.S. dollar due to negative nominal interest rates can wipe out any presumed gains and the interest earned on those bonds.


TK7936's picture

How can one be so coo coo to invest money for 30 years at sub 3 % ?

DrunkenMonkey's picture

Must be a lack of alternatives, which, in itself, speaks volumes.

No-one knows what to do, least of all the heavyweight 'investors'.

youngman's picture

I cannot for one minute why someone would buy our paper..let alone our 10 year paper at this rate.....and then to see Gold and Silver being hit hard...its like dropping your weapon and ammo BEFORE you run onto the battlefield.....what am I missing here??????Selling Gold and SIlver now when we are just days away from a black swan event in my mind....will it be Greece...France´s AAA rating...or a Italian failure..I don´t know...but something is brewing bigtime...