This page has been archived and commenting is disabled.

Bill Gross Vomits All Over "Putrid" 30 Year Bond Auction

Tyler Durden's picture


Just like in yesterday's weakish 10 Year auction, the thunder from Tuesday's strong 3 Year has all but gone. In today's issuance of $13 billion in 30 year reopening, the results were anything but strong, with the bond pricing at 2.985%, a a 3 bps tail compared to the 2.955% When Issued. Furthermore, the BTC was a big drop compared to last auction's record 2.98, coming at 2.60, compared to 2.68 in the last 12 auctions. And with Indirects taking down just 31.9%, and Directs sliding to a one year low of 7.2%, it means that it was the Fed, via the Primary Dealer repo mechanism that once again took down a whopping 60.9% of the entire auction. Needless to say, the bond market response was not pleasant, but was to be expected as the Fed continues to artificially massage the curve in any and every way possible. Most hilarious, however, was the tweet sent out by Bill Gross in the minutes after the auction which we present below: it speaks for itself.

And historical results:


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/12/2012 - 14:19 | 2058984 LawsofPhysics
LawsofPhysics's picture

Awesome, judgement day?

Thu, 01/12/2012 - 14:20 | 2058991 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gross is more bitter than Kashya Hilderbrand.

Thu, 01/12/2012 - 14:22 | 2059002 redpill
redpill's picture

I'll take your word for it, I haven't tasted her.

Thu, 01/12/2012 - 14:25 | 2059010 blu
blu's picture

ba-dum -- ching!

Thu, 01/12/2012 - 14:26 | 2059013 redpill
redpill's picture

I'll be here all week, folks.  Tip your waitresses!

Thu, 01/12/2012 - 14:34 | 2059051 Pladizow
Pladizow's picture


But you have tasted Mr. Gross?

Thu, 01/12/2012 - 14:47 | 2059109 AbruptlyKawaii
AbruptlyKawaii's picture

pis aller

Thu, 01/12/2012 - 14:56 | 2059126 BaBaBouy
BaBaBouy's picture

P O N - Z E E E E ...

Fiats Dollar Printing WITH GoldManip Goes on, as Normal ...

Thu, 01/12/2012 - 16:00 | 2059470 stocktivity
stocktivity's picture

that's what he or she implies

Thu, 01/12/2012 - 14:37 | 2059067 LongSoupLine
LongSoupLine's picture




Thu, 01/12/2012 - 14:47 | 2059106 GOSPLAN HERO
GOSPLAN HERO's picture

Does tasting cause bad breath?

Thu, 01/12/2012 - 17:51 | 2059903 ihedgemyhedges
ihedgemyhedges's picture

Depends on if you ask your wife or your girlfriend........................I'm sure I don't have to tell you the answer of each one.................

Thu, 01/12/2012 - 19:09 | 2060116 Yancey Ward
Yancey Ward's picture

But you did Gross?

Thu, 01/12/2012 - 14:24 | 2059009 ACP
ACP's picture

No way, the Fed will just buy up everything in sight and then print a trillion GLD shares to naked short them!

Problem solved!

Thu, 01/12/2012 - 14:26 | 2059015 blu
blu's picture

Shush. Don't give them any more crazy ideas.

Thu, 01/12/2012 - 14:41 | 2059092 JPM Hater001
JPM Hater001's picture

You do a diservice to crazy...Feds are way past crazy.  I wish the fed were only crazy.

Thu, 01/12/2012 - 14:28 | 2059024 Silver Bug
Silver Bug's picture

At least someone in the establishment knows how to speak the truth. Bill Gross has openly said he supports Ron Paul as well.

Thu, 01/12/2012 - 15:06 | 2059198 MachoMan
MachoMan's picture

I'd throw temper tantrums too if I got cut out of the club.  waa waa waaa

He's also fairly new to the whole religion thing...  making a hellaciously bad call on treasuries will do that to you...  hoping to save some face in the midst of collapse and endear himself to the prols.

Thu, 01/12/2012 - 14:32 | 2059042 Eireann go Brach
Eireann go Brach's picture

If I seen Bill doing yoga in his leotard in Newport Beach in the mornings, I would puke all over him!

Thu, 01/12/2012 - 14:19 | 2058988 apu123
apu123's picture

The FED will soon be the only buyer of stocks

Thu, 01/12/2012 - 14:25 | 2059011 SheepDog-One
SheepDog-One's picture

They aren't already?

Thu, 01/12/2012 - 14:33 | 2059045 GeneMarchbanks
GeneMarchbanks's picture

Check out the Baltic:

This is 2008 Redux trajectory-wise...

Thu, 01/12/2012 - 14:37 | 2059069 AC_Doctor
AC_Doctor's picture

Gene great find- change the settings to a 5 year chart and see our great recovery in action.  I see a DEPRESSION coming alongside the USS Economy.

Thu, 01/12/2012 - 14:41 | 2059096 GeneMarchbanks
GeneMarchbanks's picture

Standstill, my friend. US, China, Germany all think they can fall back on export led growth and ain't going to happen.


Thu, 01/12/2012 - 14:53 | 2059130 AbruptlyKawaii
AbruptlyKawaii's picture

obarry is doubling exports as we speak! make sure you vote!

Thu, 01/12/2012 - 16:21 | 2059312 earleflorida
earleflorida's picture

germany has to export

u.s.a.'s export platform is china, period

china is the surrogate of us exports

china needs minimum exporting coming into new 5 yr transition planned strategy

china will consume imports abroad building out infrastructure where internal labor/ materials is a non-factor regarding gnp

china wins - why?

contrary to all the china bashing,... they listen to the proletariat, which certainly can't be said for america today


Ref: "Business Cycles" {dated material  - mid 90's / but, oh so telling for today's macroeconomic policies}

Thu, 01/12/2012 - 16:30 | 2059606 Calmyourself
Calmyourself's picture

You know why they listen to the proletariat, cuz their proles know how to riot and riot they will keep delivering 8%+ growth or China is toast..

Thu, 01/12/2012 - 16:53 | 2059732 earleflorida
earleflorida's picture


i enjoy at times, playing, 'devil's advocate' - i'll leave others to sort out - my obective is strictly utilitarian --- being subjective towards critical legislation/monetary policy/ foreign affairs, etc., etc., regarding america's future is very close and dear to me,... which by the way i keep locked-up in a safe with my gold. 

the objective utilitarian am i

Ps. perhaps delivering 5% - 6% growth while the us feigns its numbers at 2% -2.5% is worrying to some --- it's still 2x +/+

Thu, 01/12/2012 - 14:37 | 2059073 Caviar Emptor
Caviar Emptor's picture

Yup. Yesterday's China and Japan news was a bell that rang unheaded by MSM. And then Germany's numbers weak as well. Final icing on cake was US retail numbers. Seems that the consumer buying spree included everybody except consumers. 

Thu, 01/12/2012 - 15:17 | 2059136 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Sweet plunge! Looks even better here:

I was following the Baltic closely a year ago hoping to see things going over the cliff. Maybe this is it.

Thu, 01/12/2012 - 20:58 | 2060255 Zero Govt
Zero Govt's picture

Holy Shit Batman

Thu, 01/12/2012 - 15:03 | 2059185 Dr. Engali
Dr. Engali's picture

Damn pirates.

Thu, 01/12/2012 - 15:51 | 2059422 Stuck on Zero
Stuck on Zero's picture

A really low Baltic Dry is a great thing.  You can bring in huge container loads of illegal immigrants much more cheaply.

Thu, 01/12/2012 - 15:57 | 2059424 bigkahuna
bigkahuna's picture

Baltic Dry Index from 1900 to 1200 in two months and looks to be headed lower.

Something has got to crap the bed.

Thu, 01/12/2012 - 16:55 | 2059744 ucsbcanuck
ucsbcanuck's picture

Over 36% fall in 2 months. Something is up...

Thu, 01/12/2012 - 18:22 | 2060002 n2dark
n2dark's picture

That's because everybody's buying local nowadays, and that includes t-bonds as well.



Thu, 01/12/2012 - 14:38 | 2059074 Sandy15
Sandy15's picture

They already are........ 100% correlation in this market since March 2009.....  Been saying it for years now!

Thu, 01/12/2012 - 14:57 | 2059147 Dr. Engali
Dr. Engali's picture

You forgot about the perma bull Robo....

Thu, 01/12/2012 - 16:31 | 2059616 Calmyourself
Calmyourself's picture

fooled you Robo shorted the baltic dry with the baltic wet yesterday....

Thu, 01/12/2012 - 14:20 | 2058989 Cdad
Cdad's picture

Cue President Zero to call for a lift in the debt ceiling to issue more putrid debt.

Rocket scientist everywhere today.  And unicorns.

Thu, 01/12/2012 - 14:27 | 2059018 SheepDog-One
SheepDog-One's picture

Markets way more resemble a landfill today, just heaping on more putrid compost and trash on top of more trash.


Thu, 01/12/2012 - 14:34 | 2059055 Cdad
Cdad's picture

Just one more day, Dog.  Just one more hit of more yarn spun on the BlowHorn [CNBC] by some half witted banker...just one more QE...just one more illegal currency trade...just one more European between half witted politicians...just one more lift in the debt ceiling.  

Just one more day, Dog.

Thu, 01/12/2012 - 14:39 | 2059081 SheepDog-One
SheepDog-One's picture

Just like in 'Idiocracy' when they piled the trash so high it caused a sudden Trashalanche over the whole city.

Thu, 01/12/2012 - 14:48 | 2059111 Cdad
Cdad's picture

Love that one, Dog...although the first time I watched it, it seemed more like a documentary to me than a movie.  Anywho...I got's my degree from I'm good to go.

This country needs a zombie apocalypse so badly it just hurts each day that I do not see the undead stumbling around on Wall Street.

Thu, 01/12/2012 - 15:57 | 2059331 centerline
centerline's picture

Is it bad that this so true?  That I am laughing?  Or because it is both true and I am laughing?  I can't tell anymore.

Thu, 01/12/2012 - 15:57 | 2059455 centerline
centerline's picture

Oops. Found your undead at walking around at Walmart.

Thu, 01/12/2012 - 15:10 | 2059212 dexter_morgan
dexter_morgan's picture

Many things we see are way to similar to Idiocracy.........unless that movie was made 500 years ago.........

I like money.........

Thu, 01/12/2012 - 15:14 | 2059238 slowimplosion
slowimplosion's picture

Ow - your balls

Thu, 01/12/2012 - 14:39 | 2059079 Caviar Emptor
Caviar Emptor's picture

just heaping on more putrid compost and trash on top of more trash.

Sheep: luv that one! 

Thu, 01/12/2012 - 14:20 | 2058992 jmcadg
jmcadg's picture

Sour grapes

Thu, 01/12/2012 - 14:21 | 2058994 kengland
kengland's picture mean the Same Bill G who has been short bonds now for fulking months taking on and off all over the place? That's like GS "puking" all over Euro$ at 1.27.

Same old sheet just another day

Thu, 01/12/2012 - 14:30 | 2059032 SheepDog-One
SheepDog-One's picture

I recall that time period I was saying Gross was crazy to short bonds because the FED would be sopping them all up faster than truckers on sausage gravy.

On the other hand, are the bonds actually WORTH anything? Well, so far so good for today, and tomorrow...but bottom line theyre now only worth what the FED says and 1 day that will be zero, because what people dont understand is the FED buying bonds and monetizing all debt is the last act before the rug is pulled.

Thu, 01/12/2012 - 14:36 | 2059064 Cdad
Cdad's picture

The last act of a failed dictatorship is the looting of the treasury.  And considering how quickly that last debt limit increase lasted, they must now be using container ships to haul it away.

So blatant...what is going on.

Thu, 01/12/2012 - 14:41 | 2059087 Caviar Emptor
Caviar Emptor's picture

Yup. And after looting the treasury they'll cannibalize whatever they can find. Even each other

Thu, 01/12/2012 - 14:21 | 2058995 GeneMarchbanks
GeneMarchbanks's picture

Gross is Putrid.

Thu, 01/12/2012 - 14:24 | 2059006 Randall Cabot
Randall Cabot's picture

That's gross.

Thu, 01/12/2012 - 14:33 | 2059050 Wakanda
Wakanda's picture

144 is gross

Thu, 01/12/2012 - 14:21 | 2058996 jmcadg
jmcadg's picture

Touché Mr Lennon Hendrix

Thu, 01/12/2012 - 14:22 | 2058999 pitz
pitz's picture

And I'd vomit all over that Bill Gross faggot if I had the chance...

Thu, 01/12/2012 - 14:37 | 2059071 Pladizow
Pladizow's picture

Do you have a poor gag reflex?

Thu, 01/12/2012 - 14:26 | 2059016 youngman
youngman's picture

and yet we still talk about a "BOND MARKET".....

Thu, 01/12/2012 - 14:31 | 2059036 SheepDog-One
SheepDog-One's picture

Same with the 'STOCK MARKET', really nothing but a FED generated hologram.

Thu, 01/12/2012 - 14:26 | 2059017 Hetman68
Hetman68's picture

What a great issuing 30 yr hetman68 bonds to finance my deficit any me hit the print button.......sold to me...SUCCESSFUL AUCTION! !!!!

Thu, 01/12/2012 - 14:27 | 2059019 Bullwinkle Moose
Bullwinkle Moose's picture

The only thing to do now is buy tangible assets that can not be printed in mass by the evil powers that are driving us to a one world government.

Thu, 01/12/2012 - 14:27 | 2059020 Irish66
Irish66's picture

Hello market wake up

Thu, 01/12/2012 - 14:33 | 2059048 SheepDog-One
SheepDog-One's picture

One day, pretty soon I bet, we'll see an incredible Cat 5 Shiticane across the so-called financial world.

Thu, 01/12/2012 - 15:08 | 2059201 dexter_morgan
dexter_morgan's picture

haha Mr. Lahey. The winds of shit are blowin...........

Thu, 01/12/2012 - 14:29 | 2059027 cymro33
cymro33's picture

Something is brewing!!!!

              Obama said: "Our money is an illusion. Money is nothing other than debt. The money that you carry in your pocket is other people's debt. “

     This prompted a reporter to respond angrily: "Are you saying that the FED creates money out of fresh air - while others have to work hard for it?"

  "That's precisely the case," answered Obama.

 The US President explicitly advocated a new type of monetary system, but said that one had to bear in mind that this was an extraordinarily difficult issue. The last president who tried to do this paid for it with his life. Obama: "I don't want to end up like Kennedy



Thu, 01/12/2012 - 14:32 | 2059043 Irish66
Irish66's picture


Thu, 01/12/2012 - 14:41 | 2059090 Pladizow
Pladizow's picture

Believe half of what you see and nothing of what you hear!

Thu, 01/12/2012 - 14:41 | 2059095 Irish66
Irish66's picture


Thu, 01/12/2012 - 16:44 | 2059683 Calmyourself
Calmyourself's picture

Bamster could screw his poodle on the front lawn while michelle danced a hulu around him in a Ben bernanke mask and the media would spin it...  NDAA anyone??  This is not just politics it is an entire system dedicated to screwing and controlling you. The MATRIX is real and your in it..

Thu, 01/12/2012 - 14:34 | 2059053 Sandy15
Sandy15's picture

The Difference here is that Kennedy went against the 'establishment'.  Obummer is doing exactly what Soros and Rothchilds want.........  they want a one world currency.



Thu, 01/12/2012 - 14:37 | 2059065 SheepDog-One
SheepDog-One's picture

Exactly, the JFK plans were to expose the FED and secret societies....Obama is doing the opposite this is about a 1 world currency, central all powerful bank plan.

Thu, 01/12/2012 - 15:26 | 2059297 pods
pods's picture

Kennedy did no such thing.  EO 11110 is a myth.


Thu, 01/12/2012 - 14:36 | 2059059 Seasmoke
Seasmoke's picture

Nice Try !! ................But NO WAY that is a true post

Thu, 01/12/2012 - 14:38 | 2059076 MonkeySmoke
MonkeySmoke's picture

I clicked the link but there is no date on the article. There is little information regarding sources for the information. It states it will be broadcast on 60 Minutes, but does not say when. Am I overlooking something, or is this just smoke and mirrors BS?

Thu, 01/12/2012 - 14:41 | 2059086 Irish66
Irish66's picture

SEARCH obama dollar illusion,  its Bullshit

Thu, 01/12/2012 - 15:22 | 2059279 SuperRay
SuperRay's picture

Don't waste my time linking me to total BS.  That's some wet dream with no basis in fact.  Obama would never say those things - he's too slick. he makes slick willie look like he's wearing a sandpaper condom, he lies better than a persian rug, he can fake sincerity better than a high priced hooker, he... well i won't waste any more of your time

Thu, 01/12/2012 - 14:31 | 2059038 LongSoupLine
LongSoupLine's picture

and on that note, the market is green on impressive unvolume and silver back above $30.

Thu, 01/12/2012 - 14:31 | 2059039 847328_3527
847328_3527's picture

Where does the money come from to buy all these bonds? I read revenues were down.

Thu, 01/12/2012 - 14:35 | 2059058 LongSoupLine
LongSoupLine's picture

Here's a clue:  The ink on the money is still wet.

Good luck with my riddle.

Thu, 01/12/2012 - 14:36 | 2059061 YesWeKahn
YesWeKahn's picture

Phuck the FED!

Thu, 01/12/2012 - 20:56 | 2060279 Zero Govt
Zero Govt's picture

well you're 2nd on the list of the Feds new 'hit squad' to seek out and find public Fed dissenters..

..Bill Gross is obviously now 1st

Thu, 01/12/2012 - 14:37 | 2059068 whatsinaname
whatsinaname's picture

the 0.50 % they charge foreign banks for dollar swaps ?

Thu, 01/12/2012 - 14:38 | 2059078 AC_Doctor
AC_Doctor's picture

When's the French downgrade coming into theaters near you?

Thu, 01/12/2012 - 15:24 | 2059287 FranSix
FranSix's picture

The Americans downgrading the French?  Is this some kind of theatre of the absurd?

Thu, 01/12/2012 - 16:02 | 2059466 falak pema
falak pema's picture

All American uber-alles finance knows how to do is rape the poor, like in Greece, HFs like vultures ride that wave where they leverage thanks to their PD partners to get carry trades at ZERO in offense and the Sovereings pay 40% in defense. Thats a poker hand played with a stacked deck. Shoot the cheater like in Dodge. Doctor Holliday. Or you be a Clanton.

Thu, 01/12/2012 - 14:40 | 2059083 famousamos
famousamos's picture

I have my entire 401k in Gross's Total Return Fund (can't touch it, pretax, company rules). I hope they don't burn his house down like they did MF Globals.


Thu, 01/12/2012 - 14:41 | 2059088 Sandy15
Sandy15's picture

Better get it while you can.......

Thu, 01/12/2012 - 14:40 | 2059084 Sandy15
Sandy15's picture

Think I will just take some money and copy, uhmm I mean print it, then pay off my debt.

WHAT'S the difference?

Thu, 01/12/2012 - 14:41 | 2059089 chistletoe
chistletoe's picture

So which is better for the U.S.A.?


puking on the long bonds




peeing on the Taliban?

Thu, 01/12/2012 - 15:54 | 2059434 falak pema
falak pema's picture

you can do both but it only makes you more animal and less sustainable as excellent human. FIxing the problem, the real one, not the false one, is the sign of excellence and sustainability. 

Thu, 01/12/2012 - 14:43 | 2059100 YesWeKahn
YesWeKahn's picture

Can the fraud reserve bring down the whole curve to 0? That would be interesting. That would mean that US can borrow a google of $.

Thu, 01/12/2012 - 14:43 | 2059101 Fastback
Fastback's picture

At least, it seems Bill Gross, is willing to share the Truth with the Sheeple vs the Status Quo of the markets.

Thu, 01/12/2012 - 15:14 | 2059231 MachoMan
MachoMan's picture

The problem with born again virgins is that they have a broken hymen...

Thu, 01/12/2012 - 15:50 | 2059417 falak pema
falak pema's picture

why is that a problem?

Thu, 01/12/2012 - 19:24 | 2060142 MachoMan
MachoMan's picture

It's not a problem for a penis...  it's a problem for the woman when she tries to pretend she actually has a hymen (e.g. when bill gross does a bout face and starts bashing the hand that has fed him for so long).  Needless to say, I agree with his comments, but he's parading around in a funny costume compared to his former self.

Thu, 01/12/2012 - 14:45 | 2059104 Caviar Emptor
Caviar Emptor's picture

Gross is no longer as much of an insider as he was. They may come after his deep pockets. Hard to beat a rigged casino

Thu, 01/12/2012 - 15:17 | 2059255 MachoMan
MachoMan's picture

Absolutely.  If I were him, I'd find a local depository for some shiney stuff...  possibly even buy the damn depository.  If they buy some of these bundled mortgages for pennies on the dollar, the properties would be spread out everywhere, making it logistically difficult to confiscate efficiently.  Plenty of options...  none perfect.

Thu, 01/12/2012 - 14:49 | 2059114 silverserfer
silverserfer's picture

Go short yourself!

Thu, 01/12/2012 - 14:53 | 2059123 Dick Darlington
Dick Darlington's picture

OT: Bloomberg making those funny headlines again. Sure, it's daily, but this! Really? Lol!

Oil Advances to Highest Level in a Week on Nigerian Strike, Europe Outlook

Thu, 01/12/2012 - 14:59 | 2059159 Irish66
Irish66's picture

“It was a bit of a surprise for the European Central Bank to not lower rates and that spurred oil’s inverse dollar trade.”

UMM..everybody and their mother knew

Thu, 01/12/2012 - 15:05 | 2059191 Dapper Dan
Dapper Dan's picture

I will see  your OT and raise it


(U) Current Economic and Political Climate

(U) Exploiting Economic Downturn

(U//FOUO) DHS/I&A assesses that a number of economic and political factors are driving a resurgence in rightwing extremist recruitment and radicalization activity.

Despite similarities to the climate of the 1990s, the threat posed by lone wolves and small terrorist cells is more pronounced than in past years. In addition, the historical election of an African American president and the prospect of policy changes are proving to be a driving force for rightwing extremist recruitment and radicalization.

— (U) A recent example of the potential violence associated with a rise in rightwing extremism may be found in the shooting deaths of three police officers in Pittsburgh, Pennsylvania, on 4 April 2009. The alleged gunman’s reaction reportedly was influenced by his racist ideology and belief in antigovernment conspiracy theories related to gun confiscations, citizen detention camps, and a Jewish-controlled “one world government.”


(U//FOUO) Rightwing extremist chatter on the Internet continues to focus on the economy, the perceived loss of U.S. jobs in the manufacturing and construction sectors, and home foreclosures. Anti-Semitic extremists attribute these losses to a deliberate conspiracy conducted by a cabal of Jewish “financial elites.” These “accusatory” tactics are employed to draw new recruits into rightwing extremist groups and further radicalize those already subscribing to extremist beliefs. DHS/I&A assesses this trend is likely to accelerate if the economy is perceived to worsen.

DHS encourages recipients of this document to report information concerning suspicious or criminal activity to DHS and the FBI.

Thu, 01/12/2012 - 14:55 | 2059137 the grateful un...
the grateful unemployed's picture

Gross probably wants to be Fed chief, and I for one think he would be a good one. I'm waiting for someone to get appointed to UST or Fed chief who has some populist connections. I would suspect Obama might appoint someone at the eleventh hour to make the point, and try to win the election. (hi I've been on their side for 3 years and 10 months but this is where I really belong with all you good people : speaking of vomit) but the other gangsters are bailing out on Barry Titanic, Emanuel, and now Daley. he might have to throw us poor folks a bone in order to get four more years.

Thu, 01/12/2012 - 14:57 | 2059143 Sutton
Sutton's picture

Gross is setting up an Albert Speer like persona to gain leniency at a future Nuremburg Trial for for the DC/Wall Street rape of America.

Thu, 01/12/2012 - 14:59 | 2059158 TonyCoitus
TonyCoitus's picture

Everthing is well....because Krugman says so BITCHEZ!


Thu, 01/12/2012 - 15:03 | 2059183 redpill
redpill's picture

If the band on the Titanic had a vocalist, it would have been that douchebag.

Thu, 01/12/2012 - 15:10 | 2059213 xcehn
xcehn's picture

Way to go with the vivid image without a picture. TU, TD.

Thu, 01/12/2012 - 15:20 | 2059274 vincent
Thu, 01/12/2012 - 15:20 | 2059275 FranSix
FranSix's picture


Thu, 01/12/2012 - 15:33 | 2059336 Snakeeyes
Snakeeyes's picture

Great Tweet by Gross!

Federal Deficit at -$86 Billion, Debt Soars (Thanks to Uncle Ben) and Those Darned Animal Spirits!

Thu, 01/12/2012 - 15:46 | 2059395 Mark123
Mark123's picture

In what sort of world can the leading economies create unlimited debt without limits year after year?  We are far beyond any ability to honestly repay debts from Europe, USA, Japan and China.....who does that leave???

The central banking cartel seems content to destroy the entire system as long as they gain relative advantage.  Nothing else explains their ongoing support of profligate government spending and commitments.

We are so screwed. 

Thu, 01/12/2012 - 16:22 | 2059514 slewie the pi-rat
slewie the pi-rat's picture

pimpco can tweet anything it wants

this went down @ 2.955%;  the auction a year ago went for just under 4.5%

if we do the mathTM we see that we have a 33% decrease in interest and it will take a 50% increase from here to get back to last year's auction rate

so, pimpco gripes b/c the bond price fell a bit here compared to the last auction and my chart shows the US Bond = 143.64 last (-.21)

so, the internals don't lQQk strong, but the "market" @ 143.64 may suggest that not all the bonds that went to the PDs will go to the FED altho it is policy under chubby checker that they sure may if the PDs' retail = 0

this is simply FED monetary policy, jan, 2012

the pimpco tweet = a cheerleader fart 

unfortunately, on the Team bus & it seems fig newtons were involved!

gotta go, BiCheZ!

Thu, 01/12/2012 - 16:35 | 2059629 hooligan2009
hooligan2009's picture

the present value of those thirty year liabilities has increased from whatever was issued at 4.5% a year ago to a much larger number. in this inverse logic world where the bigger your debt the cheaper it is, this feature is coveniently missed. the price of, say $10 billion of 4.5% 30 year bonds has migrated from 100 at issue a year ago to (25 years duration x 1.5% drop in interest rates = 37.5%) 137.5. Making an increase in liabilities of this amount. You won't hear this discussed anywhere and after all one could claim that the Fed has made a $77 billion profit on all its Treasury holdings (bandied around as the world's largest hedge fund a day or so ago).

This only work for as long as the Fed is the politburo driving the markets around setting prices in the overall economy. The value of anything is the discounted value of its future cash flows, you drop the discount rate and the theory has it you increase the present value. Trouble is, somebody will have to buy the Treasuries, since we have discovered that Treasuries are in fact money. Same as a dollar bill is money. It is printed and in criculation and will be needed by someone to exchange for VALUE (education, health, houses, cars). If there is 16 trillion of debt plus another x trillion of notes and coins, you have effective equivalence of debt and notes/coins in circulation.

The convergence between Zimbambe, Japan, the US and the RoW is rapidly approaching when the Fed and the Government will have debased currency so it is what it is.....paper and worth nothing.

Thu, 01/12/2012 - 16:40 | 2059664 csmith
csmith's picture

15:22  TLT Pimco's Bill Gross says Treasury holdings in fund at its highest level in 13 months (119.73 -0.13) -Update-
Read more:


Public Bill and private Bill not the same person...

Thu, 01/12/2012 - 16:56 | 2059750 e92335i08
e92335i08's picture

Someone pull this rug back to 1068 Test and then test 1000-1020 this is so ridiculous. I really wonder what the net position of the NY FED in the ES IS? + 100000000000000000000 contracts i mean jeez.

Thu, 01/12/2012 - 18:26 | 2060014 Mr Sir
Mr Sir's picture

We'll see how cool he is when Europe blows up and the 30yr yield drops below 2%.....we know he already has a template for that letter to investors.

Thu, 01/12/2012 - 18:29 | 2060023 Mr Sir
Mr Sir's picture

Let me add that 30yr German bunds yield 2.44%, 0.53% below the U.S. 30yr and in the 2008 crisis the U.S. 30yr yield fell to 1% below Germany's....history repeats itself Billy.....they didn't come up with that phrase cause it happened once.

Fri, 01/13/2012 - 00:31 | 2060659 ebworthen
ebworthen's picture

And...the Italian bonds were down today so the Europeans were asked to buy some of their own bonds versus U.S. this go around.

Do NOT follow this link or you will be banned from the site!