Details of the latest offering of the 3-10-30s have been released. Between July 12 and 14, the US Treasury will auction off $69 billion of 3, 10 and 30 Year bonds.

• $35 billion in 3 Year Bonds on July 12 (link)
• $21 billion in 10 Year Bonds (reopening) on July 13 (link)
• $13 billion in 30 Year Bonds (reopening) on July 14 (link)

We anticipate there will be no glitches in the take down of this latest total, which amounts to about 33% of the average recent monthly deficit, as "direct bidders" continue to increase their participation. These auction will be promptly followed by another 2,5,7 offering as there are hundreds of billions in budget shortfalls that can only be funded thru endless debt issuance.

Just a rumor for now. On the other hand, it conforms precisely to Credit Suisse's earlier announcement that Post Bank, in addition to Greek ATE, Piraeus, Helenic Postbank NBG would fail the Stress tests. (more to come).

Some interesting developments in the mutual fund arena, where a trailblazer, the Appleseed Fund, has announced that beginning July 1 it will no longer invest in Too Big To Fail banks: "Given the failure of regulators to prevent the previous credit crisis
and the subsequent failure of legislators to break up the massive and
very much interconnected banks that helped to create the crisis, it is
incumbent on depositors and investors to vote with their wallets. Until
the financial system is truly restructured, the Appleseed Fund will
avoid investments in too-big-to-fail banks, choosing instead to invest
in regional banks, community banks, and credit unions which lend money
to families and businesses that operate in the productive sectors of our
economy."

Today, Freddie Mac announced that the 30 Year FRM declined to a new all time record low, dropping by 1 bp to 4.57% from the week before. Yet even as mortgage rates hit fresh weekly records courtesy of the Fed's undisputed control of the mortgage market, the only thing increasingly more certain is that even at 0.00% there is precious little marginal demand in the primary market for housing. Here are the latest observations from Rosie on precisely this phenomenon, and much more.

A highly amusing exchange occurred earlier on CNBC when guest Damon Vickers of Nine Points Capital had an unexpected moment of truthiness and turned some heads when he said that "unless the plunge protection team comes in over the next couple of days, the markets are looking very dicey here." When a disgusted Joe Kernan asks if Vickers was making a joke about the PPT, the response is "absolutely not - it's common knowledge that the government steps in and does things to step on the gas and buy stock here and there." To which Byron Wien has a strong retort: "I don't believe it." All that and much more in the clip below. In the meantime, the market is sure having a field day with stocks as once again bad news are discarded and the smallest glimmer of positivity serves as a springboard for yet another ramping short covering spree.

The Baltic Dry, which contrary to what some may claim, actually is one of the best leading indicators on global trade and thus the health of the economy, continues to plunge, and is now below 2000, hitting fresh 14 month lows, at 1940. It is now at the levels last seen during the March 2009 "generational" low, and just after the Lehman bankruptcy. Yet futures are up as initial claims beat expectations by 6,000 very statistically relevant people.

• Jim Willie: Road to Perdition (Financial Sense)
• Paper gold versus the dollar? Interview with Jim Rickards (Institutional
  Risk Analytics)
• Reid so toxic his son campaigns without last name (Bloomberg)
• ECB holds rates at 1%, faces liquidity grilling (Reuters)
• And somehow the IMF raises growth expectations as the world enters a
  double dip (Bloomberg)
• Hedge funds "frozen in headlights" cut trading as markets swing (Bloomberg)