As 4 Week Bill Auction Closs At 0.000%, Bill Rates Now Negative Through November

Tyler Durden's picture

That today's just completed 4 Week auction was not surprising: it closed at 0.000% - after all where is that money going to go: Bank of America? Gold (don't answer that)? Spam? What is surprising is that when it comes to preserving copious amounts of cash, investors are willing to bid up the entire Bill curve not just overnight, but well over two months. That's right - as seen on the second chart below, the entire curve is now negative through November!

4 week acution:


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Traianus Augustus's picture

Ummm...this is bad...right?

mayhem_korner's picture

Not if you're into protracted recessions and dime-on-the-dollar real estate values.

Translational Lift's picture

Ummm...this is bad...right?

Hell NO!!  BDFD!!!

midtowng's picture

In a real free market this would never happen. This only happens because of central banks, and their private bankster masters.

mayhem_korner's picture

Put your weapons down.  I'm happy to pay you to hold my money.  I know you'll keep it safe.



Jon Sheeple-Doe

Dick Darlington's picture

And equities are pricing Shangri La as usual. What a joke, lol.

ZippyDooDah's picture

I know you meant to write "bullshit."



mayhem_korner's picture

+1 for avatar of the month.  Former winners include Sudden Debt, SmiddyWesson, Pladizow, Caviar Emptor, Davey Jones, Long-Juan Silver, and the dude smashin' his head bloody on the piano...

Flakmeister's picture

I hear ya... but it was a keyboard, not a piano...

pods's picture

We cannot forget the mesmerizing Muir?

My vote for next month is that bug guy. I chuckle whenever I see that thing as I try to smush it.


Awakened Sheeple's picture

Username and Avatar are true stories.

StychoKiller's picture

Guess you never saw Speedy's avatar (o)(o)  Boing, boing! :>D

mendigo's picture

I think your onto something with this spam as hedge.

People do want spam.

tekhneek's picture

ever tried to eat gold? shit's disgusting.

LawsofPhysics's picture

Of course, never, in the history of the world has a farmer NOT accepted gold in exchange for food.  The same can not be said of fiat paper. LOL!!

Inspector Bird's picture

Never?  Obviously you've never been in a famine-stricken, war torn environment where gold has as much value as urine.  Trust me, there are moments in time when gold is worthless, particularly to certain people.


That said, I'd agree that in MOST economic environments, gold is acceptable for trade of any kind.  It's "lack" of value is purely dependent on time, place, and mindset of the populace.

papaswamp's picture

Sure buys a couple of goats easy enough...

john39's picture

just business as usual in a world run by pschopathic liars.  the implosion will be epic when it hits.

slaughterer's picture

TBT waking up from the dead.

slaughterer's picture

Give me your money.  I will hold it for you for free.  About that interest, well sorry. 

snowball777's picture

At what point do you stop saying "liquidity trap" and start calling it a liquidity vortex?


Poetic injustice's picture

When committee has voted on that. Better, make that 3 committees.

Yardstick of Civilization's picture

Is there a compression trade to be made by shorting treasuries and gold?  People can't be willing to pay very much to have their money held.  At some point, it makes sense to install private vaults . . . .

firstdivision's picture

Compression trade is looking good. The equity market is completly high on hopium today, while everything else seems to be pricing in reality.

Yardstick of Civilization's picture

So the trade would be shorting treasuries and shorting gold, which will work unless we can have both hyperinflation and hyperdeflation at the same time . . . I just the see the equities as being untradable at this point.

ArkansasAngie's picture

It good if you want Washington and Wall Street  to continue screwing you

youngman's picture

So I says to my client.....I am going to take your $100 dollar.....and in 2 months give you back $98....and you are good wid is good

White.Star.Line's picture

Two dollars seems like a small price to pay for the illusion of safety.

Odin McHaggis's picture

When the economy completely implodes, what will the Dow be 12500, 13,000? DOW 36,000!

firstdivision's picture

QE3 details get leaked today?

cowdiddly's picture

Let me see do I want a nice shiny St. Gaudiens or a zirp bond(correction: NIRP bond) with 6% inflation. Boy that was easy. Hello, is this Gainesville?

slaughterer's picture

SPY/ES bears getting killed right now.   Looks like Robo-trader revenge day.

Gibu The Great's picture

We need to get well above Dow 12,700 for any Robo Revenge. 

Iriestx's picture

So apparently the algos have figured out that Obama's "jobs" package is really window dressing for QE3?

Sandy15's picture

And this is Bullish for Stocks how????

slaughterer's picture

It is not bullish for stocks, but that does not matter anymore. 

Village Smithy's picture

No news flow + ZIRP + HFT = S&P up. It's getting predictable. When I start trading it though you can count it out.

ZippyDooDah's picture

Buy the rumor, sell the news (?)

i.e. the rumor of QE3.

I'm calling it "Watch Out Friday."

Sandy15's picture

The market is showing QE something going on.  Fed buying it up just as they have over the past 2 1/2 yrs.

RobotTrader's picture



Any reason for today's ES ramp job and outright gold liquidation?

I can't find any news.

Michelle-Caruso Cabrera must have taken off her blouse or something.

trampstamp's picture

Yeah that's definitely bullish.

LawsofPhysics's picture

Central bank are leveraging gold to prop up the EURO and underwrite PIIGS bailout.  Simple, and very transitory.  Very good for equities.

Duffminster's picture

In my opinion its because silver looks coiled for a hyperbolic move and gold ready to hit $2500 way ahead of the big boys predictions for later this year.  Silver is sitting right at or +/- various moving averages and is way behind gold in terms of local term ratios.  If silver starts accelerating (as it will despite their bs intervention), its going to send gold parabolic as well, even as the increasingly insolvent entities using funny money to bid treasuries to zero while hf and esf operatives pump up the stock market with clound vapor systems who's legs are shaking already.

Unless S&P can hit 1000, Bernanke and Co. have zero chance of announcing QE3 but the real Fed action (short term) will be expanding swap lines to a few giant banks in Europe that are about to be run.  By the Swap lines and QE3 amount to currency devaluation, which ultimately, short of a complete destruction of the global banking system and a 30 year depression, mass civil unrest and so on, is the only choice the bilderbergs and their ilk have.   I heard there is a list of the members addresses circulating among low frequency traders.

Just a thought.  Silver is still going parabolic as the lack of QE3 announcement at Jackson Hole is likely to be an excellent catalyst to drive S&P to or below 1000 and that will move us towards a QE3/4 panic along with a new version of TARP as the US realestate market and general economy will call on the last remaining tool of the Fed (printing) to keep the major Fed members and the largest European banks from going into meltdown mode.  By the way, RobotTrader, if you look anything like your avatar and are actually a woman, I'd love to bump into you some time.

Just a thought



slaughterer's picture

Buying to open SPY Aug 26th 110 and 108 puts.  Like the rest of the world, it seems.   

LawsofPhysics's picture

Epic pump for paper pushers, epic fail for those who bring real value to the economy.  Pefect, the DOW and gold will be a 25,000,000,000,000,000,000,000 as the economy implodes.  Sure, it's bullish.