This page has been archived and commenting is disabled.
Bonds Sell Off Following Very Weak 30 Year Auction
Minutes ago the Treasury auctioned off yet another block of $16 billion in 30 Year bonds. The auction was pretty horrible: the When Issued was trading at 3.155% when the press release hit that the bond cleared at only 3.199%, a huge 4+ bps tail for the longest duration paper. Internals were not pretty either: the Bid to Cover dropped from 2.94 to 2.40 and Dealers had to buy well over half again or 55.7% with Indirects taking a meager 28.4%, and the remaining 15.8% going to Directs, nearly half of the 29.5% from October. Obviously this is the inverse of what happened in Italy today, when the tail was a negative 150 bps and the 1 year Bill closed at just over 6% with the WI trading in the mid-7%'s. Perhaps the global banks, in an attempt to preserve the Ponzi one more time, pushed all their freely allocatable and repoable capital into Italy and had far less left for long US paper. Nonetheless, the yield at 3.199% was just the second lowest. We salute anyone who believes that as central banks are about to set off on a record printing episode to bail out Europe, that inflation will not rise. Needless to say, the weak auction pushed the entire treasury complex lower, as senn by the second chart of the 30 Year following the auction. With this auction, the refunding trio of issuance for the week is over and when all is settled on Monday, total US debt will be just shy of $15.1 trillion. We are so lucky that the Supercommittee is working up to snuff even as the next debt ceiling hike is rapidly approaching.
30 Year bond yields with the auction announcement marked:
»
- 5850 reads
- Printer-friendly version
- Send to friend
- advertisements -
oil approaching 100$ wti, ya baby get that growth started
Yeah
But gold is getting monkey hammered today.
No shit... who is supressing gold? It's getting donkey punched.
Debt deflation... engaged.
Dang.
I was trying to troll but cant get a single negative.
Half a percent is hardly monkey hammered.
I will never be as good as robo.....sigh
Nice try... but the PMs are behaving strangely today -- it isn't the 'size' that matters (where have I heard that before?).
Dollar down, DOW up, OIL up, ... normally the yellow metal hitches a ride.
Either that, or it was just those meddling kids again.
It's in the post... bond investment tied up rescuing Itali, so PMs get whacked to direct investment to bonds... just another day in the rigged financial system...zzzzzzzzzzzzzzzzzzzzzzz!
ugly
Bullish for equities, of course
oooo....I feel like running with the bulls today!
(oh wait...I'm not in Pamplona)
Nothing a Geithner speech can't fix.
Update on Penn State :
http://rivals.yahoo.com/ncaa/football/news?slug=ycn-10407023
Penn State Scandal: Rumor Claims Sandusky “Pimped Out” Boys to Rich Donors
http://en.wikipedia.org/wiki/Ray_Gricar
Ray Gricar was the DA and Penn State was in his jurisdiction...
http://www.pennlive.com/midstate/index.ssf/2011/11/gricars_nephew_on_199...
Former Centre County DA Ray Gricar's nephew on 1998 Jerry Sandusky case: 'Ray was beholden to no one'
The guy disppeared in 2005 just months before retiring. Me thinks the guy was wacked.
Catholic church
Rich people pimping out little boys and girls for personal enjoyment, no say it isn't so.
The homes of the richest people in the world are filled with enough material to make 100 seasons of Law and Order SVU. Much of the Bilderburg meeting probably centers around how much cocaine it takes to get a nice supple 7 year old shipped from Singapore to the 5th ave apartment of the best commodity trader.
The top 1% lives in a completely different world where anything is permissible and the norm is getting 14 underage virgins per year to violate. Why would you want to have sex with your dried up cunt of a wife you only married to enhance the reputation of your firm?
Drugs, prostitution, kiddie porn, killings, ritual sacrifice, blood drinking, all par for the course at a Goldman Sachs holiday party.
Yes....this is all part of a MUCH bigger ring of globalist-satanists who believe that having sex with a virgin boy gives them great supernatural power...and killing children is done routinely to honor their god, Satan. This is NOT rumor or conspiracy! The CIA, FBI, CPS, and certain "early childhood centers", and UN are also involved in the trafficking of children for these purposes.
If you want to know more, search "Ted Gunderson" or the "Franklin Credit Union" to see how high this child abuse and evil goes!
This is the ultimate in horrors of all the evil in the world today.....makes me literally ill.
How do I trade on the knowledge that satanists rule the world? Help me out.
http://www.youtube.com/watch?feature=player_detailpage&v=WDGOJl6hvh8
Higher oil, higher interrest rates, means higher stocks? Of course.
Bonds still being lapped up like cotton candy
Gimme a 100 point ES selloff and everyone "flees" to safety of paper
As for oil....
OSX not confirming the oil spike.
OSX/WTIC ratio at the lowest since 2009.
Massive correction could be coming soon.
That't why retail stocks refuse to sell off.
Stocks like Kohl's selling at 52-week highs, impervious to credit market ills.
All based on Kohls wonderful bullshit comps. I wish you would actually go into a real store Robo. There is a huge difference between reality in retail and what ends up on paper coming out of the accounting department. Kohl's probably spends more on accountants trying to figure out ways to cook the books than they do on actual selling. The numbers are 100% pure unadulterated bullshit.
Every buyer I meet with says that sales are down over 30% across the board and every vendor I talk to says that sales are terrible. Yet somehow miraculously comps are all higher when they are reported and margins are higher as well. Are you going to believe paper from the CFO or the people that are actually in charge of putting product in the store?
Oh yes I actually meet with buyers at Kohl's, Bed Bath, Target, Dick's, Walmart and many others. My company sells $150 million dollars worth of goods to these various retailers. There isn't a single buyer I have met with all year that can corroborate the story that overall sales are better than last year at any of these retailers. Eventually reality must set in. If stock traders actually had any clue about real business the S&P would be in a world of hurt.
RearviewTrader actually doesnt care at all about Kohl's, or any of the other crap he talks about, he only looks at what has popped and puts it up to give himself something to brag over.
Hey Robo hows your Apple doin? Oh, not so good. Oh well, youll find another stock to gloat about after market close is accomplished.
I like this comment. Often I see little gold nuggets in your comments.
On the OSX ratio I see it's low but not 2009 low. Care to expan on your correction thoughts? Which market are you looking for a correction and which direction?
Bond vigilantes must be salivating at the profits-to-be-had shorting US Treasuries. At these prices they undoubtedly are the most over-priced "asset" on the planet.
It will be quite a spectacle - bond vigilantes vs. Bernanke and his printing press.
Love this market meltup...
it totally makes sense with that's going on out there..
/snark
Same way they animate a zombie, big, clumsy, jerky moves to give the appearance of life.
Bond traders have been whipsawed in recent weeks. The 30 year was at 3.37 before Halloween, went to brieflyl below 3.00 and now a 4 bp tail on an auction and back to 3.16. There are a lot of competing factors in this. Flight to quality with Eurosector concerns and pressure. Concerns about printing presses gone wild and inevitable inflation. Ongoing deleveraging pushing deflation. And very big . . . Banks need to up their capitol ratios and they aren't growing income via loans and such so they're selling assets - we see it in little companies they're spinning off, and reducing trading desk limits, and selling off some portfolio holdings. Regulators are sniffing around and ratios matter big time right now.
Another unintended consequence. So many with such interference in the financial system and markets.
TLT has given back all the gains from yesterday and right ahead of a 3 day weekend for the bond traders. That's not good.
Gotta jack that DOW nonsense back over 12,000 by afternoon, after all, thats all that really matters.
Anybody notice the AAPL sell-off today? iPads are getting hammered worse than gold.
Robo hasnt commented about that yet.
I hope tomorrow morning we're reading on ZH about how nukes are landing in Iran and Israel....sick to death of all this shit.
Nah, you will get an interview with L-Pap, and a super Mario stick save of the Euro complex, plus a few cute photos of Merkozy. Plus a preview of Michelle Obama's Christmas shopping list. Sorry, that is going to be your life tomorrow. No Iran/Israel nuke showdown.
People think that just goes on and on? Theyll get killed real soon.
What a bunch of sick souless demented frigg'in pukes! Wha-? Oh no, not here... I was talking about the sick pukes at Penn St., You guys here on ZH are cool...
...aaand I'm still sitting on my 2013 TBT calls....waiting...waiting
(as I sound my sinister laugh)
Older women who like young boys are called "cougars".
Older men who like young boys are called "Nittany Lions"
he he
Well, with a few more bad auctions people will start to take the shrinking FEDs Costody Holdings for foreigners seriously. Perhaps sooner than later the
"exodus" will start. Already that the holdings shrink should be a serious warning, since during the same time there were still auctions of fresh paper.
http://research.stlouisfed.org/fred2/graph/?id=WSEFINT
Well, with a few more bad auctions people will start to take the shrinking FEDs Costody Holdings for foreigners seriously. Perhaps sooner than later the
"exodus" will start. Already that the holdings shrink should be a serious warning, since during the same time there were still auctions of fresh paper.
http://research.stlouisfed.org/fred2/graph/?id=WSEFINT
hello, operation twist, bid poorly, wait to have the fed buy back ash rinse repeate
Bernanke and Federal banksters, when can we start shovling US dollars into the fireplace to keep us warm or use US dollars as wallpaper?
In the FINANCIAL WORLD ... INDICATORS ... are fashion . Let me suggest a very accurate Indicator :
Everytime the US has an upcoming TREASURY SALE something ominous emanates out of EUROPE If put in use for the short term investor :
Everytime a US TREASURY BOND SALE is expected .. SHORT some European Financial Vehicles
Bonds are a constant investment that provides minimal risk and with today's economic situation, it would be your advantage if you know what bonds can do for you. Conservative investors have now actually preferred bonds during all the twists and turns of the stock market. Filling out a retirement portfolio at up to 15 percent with bonds is a good move, notes the Wall Street Journal. So if you're looking for a great investment without much threat, bonds are a safe course.