Treasury Issues $13 Billion In 30 Year Paper In Another Unremarkable Auction

Tyler Durden's picture


The mood from yesterday's boring 10 year auction was carried over into today's earlier 30 year auction (not at the usual 1 PM time due to Bernanke's press conference). Moment ago Tim Geithner auctioned off another $13 billion in 30 year bonds, all of which will be promptly purchased by the Fed (as a reminder, the Fed already monetizes all monthly 10-30 year issuance courtesy of Twsit), at a yield of 2.896%, the highest since May's 3.06%. Unlike yesterday's 10 Year, the Bid To Cover rose modestly to 2.68 from 2.41, in line with the TTM average. The internals were boring as well: Directs: 12.4%, Indirects: 38.7%, Dealers: 48.9%. All quite meaningless, because as noted, all of these bonds will eventually be gobbled up by Simon Potter's open market monetization desk. And with this last auction for the week, US debt is now $16,081 billion in debt (current $16,054 billion plus this week's net new money of $27,918 billion), an increase of $80 billion in the few short days since the Democratic National Convention, when the US broke $16 trillion in debt. And rising.

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Thu, 09/13/2012 - 11:56 | 2789896 FL_Conservative
FL_Conservative's picture

Who wants to buy and hold when they can front-run the fucking Fed and flip their investment for a quick profit?

Thu, 09/13/2012 - 11:59 | 2789919 BaBaBouy
BaBaBouy's picture

Hey, HOW ELSE would we Pay for all our Fecking WARS ???

{Certainly NOT with Ft-Knox GOLD}

Thu, 09/13/2012 - 12:09 | 2789985 LawsofPhysics
LawsofPhysics's picture

HH, with lies and outright fraud being the status quo, would you expect anything less?  Where is john corzine?

Thu, 09/13/2012 - 12:19 | 2790060 Silver Bug
Silver Bug's picture

More and more debt. It's a never ending cycle. Until it blows up that is.

Thu, 09/13/2012 - 11:48 | 2789852 camaro68ss
camaro68ss's picture

Wish i could print my own money and buy S***. You know how many Mc Mansions i could buy.....

Thu, 09/13/2012 - 11:49 | 2789855 LouisDega
LouisDega's picture

Wow, Thats a lot of iPhones

Thu, 09/13/2012 - 11:53 | 2789862 magpie
magpie's picture

No suprises. Might as well start monetizing the short end since there isn't anything else left to do. Imported OMT instead of QE.

Thu, 09/13/2012 - 11:53 | 2789864 Cognitive Dissonance
Cognitive Dissonance's picture

"Moment ago Tim Geithner auctioned off another $13 billion in 30 year bonds, all of which will be promptly purchased by the Fed..."

Guaranteed profits for those who flip them right back to the Fed. Beach volleyball Ponzi style.

<Hey, it's my turn to serve up a surprise for the Fed.>

Thu, 09/13/2012 - 12:00 | 2789867 Dr. Richard Head
Dr. Richard Head's picture

So far, since September 5, the US has added $81,918,000,000 in new debt.  $11,702,571,428 a day of new debt.  $16,394,000,000,000 current debt ceiling.  26 or 27 days to go?  I would assume Federal Pensions get raided in the meantime to delay the inevitable?

Thu, 09/13/2012 - 11:55 | 2789887 Yen Cross
Yen Cross's picture

  The Fed. is a"carnival" that specializes in "shell games"! This blatant outright ponzi really chaps my hide!

Thu, 09/13/2012 - 12:08 | 2789977 fuu
fuu's picture

$27.9 Trillion in net new money this week?!?

Oh it's a typo, nm.

Thu, 09/13/2012 - 12:39 | 2790212 yogibear
yogibear's picture

Just be patient. The fed's s money game will get out of control.

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