$35 Billion 2 Year Bonds Price At 0.281% As Direct Bidders Flee, Well Below Three Month Libor

Tyler Durden's picture

The US Treasury just completed the first of 3 bond sales, which as Zero Hedge observed last week, will take total US Debt to GDP to over 100%. Today's auction was more or less plain vanilla, with $35 billion in 2 Year bonds pricing at 0.281%, just inside of the 0.29% When Issued, higher than the September 0.249%, and with the Bid To Cover declining modestly from a near record 3.76 to 3.64 this month, which however is still the second best BTC for 2011. That said, the interest was not due to Directs who saw their take down share drop from 12.16% (and an LTM average of 14.30%) to just 8.21%, the lowest since February 2011. Yet while Directs (China's London-based buyers, PIMCO) Dealers stepped up and bought 52.57% of the auction, the highest since June. Naturally as has been the case recently, the bond priced well inside 3M USD Libor of 0.422%, something which in an era pre-central planning would be quite laughable, but now: perfectly normal.

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PaperBear's picture

Is this getting scary ?

kaiserhoff's picture

Opportunity knocking my good bear.

I'll raise to 40 billion at that price and invest in PMs, and thank you, Benny, thank you very much.

0cz's picture

Good to see the republicans in the white house that started shorting their own fucking country back before they stalled the debt ceiling increase are still making money. 

Is it inside trading to go short on the country you are supposed to be running but know you are incapable of doing that?    

fxrxexexdxoxmx's picture

R v D is make believe for the simple mimded. D v R is a waste of energy, time, and the playground of Dancing with the Stars fans.

Banksters tell R's and D's who, what, where, and when.

Unprepared's picture

Where is the Fed in all of this?

FinHits's picture

Fed's rule on money printing: either one is well fed or one is fed up. And we all know Ben hates to see fed up shareholders and bankers.

Trad3er_1337's picture

QUESTION, this might seem like a stupid question but dose this effect m2 money supply?? is operation twist causing M2 to increase?? because looking at the last figures m2 jumped and idd like to know why...

 

0cz's picture

m2 jumped because the presses have been running at full speed for a long time now.  Operation twist is just a poor attempt to make it look like the Fed has a plan behind their unlimited money printing. 

Trad3er_1337's picture

but dosent the fed have to disclose that they are printing??

mailll's picture

No. They just tell our Govt., you mess with us and we'll stop buying your treasuries with printed money.  Then everything collapses.  That simple.

unionbroker's picture

silly me i got it all wrong lots of cash no debt

mynhair's picture

Green light for printing expectations.  Going long.

lolmao500's picture

In other news, the whole of Bangkok (14 million people) are being ordered to evacuate.

Good luck with that.

Manthong's picture

Flooding is difficult to deal with as it is.. but this?

"..the authorities tried to offer reassurances over farmed crocodiles that had escaped their pens to roam the murky waters in various parts of the country.
Thailand is one of the world’s chief exporters of crocodile products, and farms about 200,000 of the animals at 30 farms and 900 small breeding operations, according to the Fishery Department. About 100 were reported to be on the loose in Ayutthaya, to the north of Bangkok."

At least they are not radioactive.. I think.

http://www.nytimes.com/2011/10/26/world/asia/flood-waters-in-bangkok-shut-domestic-airport.html

Everybodys All American's picture

The US Treasury just completed the first of 3 bond sales, which as Zero Hedge observed last week, will take total US Debt to GDP to over 100%.

How do I know my shorts will pay off big in due time? The US AAA credit rating is even more at risk ... anyone seen Moody's or Fitch.

Jim B's picture

WTF?  Who would lend the US Gov money @ .281% for 2 years?  I wouldn't!