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Direct Bidders Push Very Ugly 5 Year Auction Through Finish Line
SSDD in the just completed 5 Year $35 billion auction. With the When Issued trading at 1.565% into the pricing, the auction came at 1.58%, confirming there was some serious lack of understanding into the close. The Bid To Cover was 2.62, a modest jump from June's 2.59, but still on par among the lowest BTCs in the last year. The ugliness behind the headlines was once again concentrated, with directs surging to the highest since November at 14.6%, obviously an artifact of the end of QE2 as "someone" has to pick up the slack. Indirects dropped to 36.6%, well below the average LTM 41.3% in the past year. Dealers were left on the hook with 48.8% of the take down. Altogether this was a very ugly auction which spooked the bond market, which received another punch in the face after the Treasury admitted that despite rosy estimates by Barclays and others it has not seen a surge in tax receipts (thank you unemployment) and will not have enough cash to last it through August 15 (at which point all the case runs out period).
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<----we are fucked
<---- We arived in the land of rainbows and unicorns
+1 damn clever way to make a snap poll.
Tyler needs to add a 'delete' button so you can delete your f/ups...
.
That special 'someone' as in China Saudi proxy?
The Direct Bidder's' Bernank, using govt pension funds.
...and reaction was registered immediately, via the TLT [which saw someone liquidate a half million shares] vs the TBT...which is now set to ramp.
The fireworks show on the long bond are now all wired up and ready to rock.
Where the hell is bondzilla? I'm willing to buy him a plane ticket from Europe to the US...
He's hiding out with Bigfoot, the Easter Bunny, and Santa Claus. Bernank has the infinite money cheat code; no one can compete with that.
That may explain the commodity dump. Somebody is twisting arms.
Big earthquakes are often preceded by tremors.
Great, great analogy.
+1000
I'm big into PMs and have decided not to watch any longer. I'm expecting anything in the short term... but know longer term, they're going much, much higher.
Even today's Dow loss has an unreal feel to it... Does the market have a pulse?
Our favorite index, the Russell 2000, is feeling about 80% more pain today than the S&P.
Is this a message, Tyler?
dealers buy Benny -mao funds all is well.
Incestuous
the 30-year dipped. i'll bet not one single bankster buys it! /s/
we would never do more than a vanilla default
how could a ratings downgrade matter? it's already priced in!
The us debt is a zero risk trade for the big banks. In the very unlikely event the US government chooses not to pay bond holders (restructure) and if the big banks are still holding, the FED will buy them at face value. Just re-read the MBS script. If the US gov cuts spending significantly so as to cut deficits, this will start a recession and then cash is king.
maybe not,, what happened in argentina is there was no money around physically, people started bartering, that led to co-op transaction notes, that is still defacto currency in use in argentina today, if i remember its 50% of the economy if not more, if i remember ill go look up
I agree. The armagheddan secenario suggests otherwise, but at this point TPTB are still solidly in control of the world's economic system--at the most extreme, even if it should fail, they are the people who would set up the next one.
That being the case, I'm inclined to think that when they do let shit go, they'll prefer doing it earlier than later. Later on, the population will be very unfriendly and perhaps even a tad radical. They may leave a few bucks on the table, but they'll already have the next system ready to roll.
Leaving pennies in favor of ruling for another hundred years.
Perhaps it's the bond market version of the plunge protection team that picked up the slack.
so tyler, with the bid to cover ratio at 2.62/1 do any direct bidders get any bonds?
if primary and indirect are bidding to keep interest rates at lowest, do feds dirty work. do the directs ever get any bonds?
i have long thought that TARP,QE1,QE2 was done to give the primary bidders money to keep interest rates down.
do you know any directs that have recieved bonds, even though i cant imagine loaning money for 5 years to a broke dick uncle sam for 1.5%
You've got some pretty fucked up people managing your government and economy, arseholes!!!!
Perhaps part of that 16.1 trillion dollars theFed loaned out during the past 2 years or so is somehow finding its way back into the bond market to keep it artificially high. Is everything being propped up by printed money? (Just a conspiracy thought).
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