Uncle Sam Borrows $29 Billion Due In 2019, At Another All-Time Record Low Yield

Tyler Durden's picture

Yesterday it was a record low 5 Year yield, today it is the 7 Year. Tim Geithner just issued a fresh $29 billion in 7 Year bonds at a new all time low yield of 1.203%, on top of the When Issued 1.200%,and paying a cash interest of 1.125%. Those concerned that the belly of the curve may not enjoy the benefits of Twist can put those fears at rest. The internals were non-eventful, with a 2.80 B/C, just shy of the 12 TTM average of 2.81, Directs taking down 15.70%, Indirects 42.73% and Dealers left with 41.57% of the auction, an improvement from yesterday when they were stuck with over 50% of the takedown. And so, with this final weekly auction, total US debt rises to $15.75 trillion.

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fuu's picture

Do we ramp to green again now that the daily US funding crisis is over?

mayhem_korner's picture



Forgive me, sir, but you're speaking like an algo.

Ahmeexnal's picture

yields will turn negative when eurothanasia starts and everyone and his three eyed dog rushes into the safety of the reserve currency for the "last fix".

Mountainview's picture

And who buys again most of this crap? At the end of the line Big Ben with his helicopter money!

mayhem_korner's picture



Big Ben doesn't "buy" anything.  He stores obligations for your grandkids.  Now go on and send him a gushy father's day card like a good sheep.

CrashisOptimistic's picture

Correct, he doesn't.

Actually, twist is selling that part of the curve and buying longer, so this low yield is an even more powerful indicator of the crushing effect of rampant deflation than without twist.

Deflation reigns supreme.  It has to.  The fuel for the engine of civilization is getting scarce and it has to run slower.  How can deflation be avoided in the face of that?

Quinvarius's picture

Scarcity causes price increases.  Problem solved with the application of basic economics.

CrashisOptimistic's picture

Economics, basic or otherwise, is a discredited discipline on ZH.

You may not use it in defense of anything.

mayhem_korner's picture

Scarcity causes price increases.


Prices increase when the relative amount of currency pursuing the demanded item increases.  That can happen because of a scarcity of the demanded item OR an increase in the supply of the currency.  The latter is the primary culprit of late.

LawsofPhysics's picture

"Problem solved with the application of basic economics"

So we can print oil now, fucking awesome.

BalanceOrBust's picture

If deflation is so ubiquitous, then why do my groceries and gas cost so much more than a year ago?

Oh, maybe I should buy a new 70" television.  Those have come down in price tremendously since last year.  However, they don't fit in my gas tank and they taste like plastic.

CrashisOptimistic's picture

"Those have come down in price tremendously since last year."

So has the price of your house.

post turtle saver's picture

Deflation for luxuries, Inflation for necessities.

NotApplicable's picture

ZIRP 'til the day the dollar dies.

NotApplicable's picture

"Gonna ZIRP that debt service right out of thin air."

ITrustMyGut's picture

blow blow blow.. the bubbles.. we'll have a bubble good time!


then.. POP goes the bubble! ( with the new PRC direct connect, its assured now!)

I for one, welcome our new Asian overlords~


zaphod's picture

At some point, doesn't it just make sense for large institutions to take large amounts of cash, instead of a 7, 10 or 30 commitment with interest rate exposure risk?

NotApplicable's picture

Where are they going to safely preserve this cash? Certainly not in a bank! Hence, the "safe haven" fallacy of Treasurys.

Think of it as another form of paying protection money.

catacl1sm's picture

Build their own vault. HA! Take that banks!

NotApplicable's picture

Why do you hate freedom and America?

PivotalTrades's picture

They all believe that they will get out of that roach motel first!

fuu's picture

01110111 01110100 01100110 00100000 01100101 01110110 01100101 01110010 00100000 01100011 01100001 01110010 01100010 01101111 01101110 00100000 01110101 01101110 01101001 01110100 00101110

Kilgore Trout's picture

My employer would not be happy that I just took the time to decode that.

hedgeless_horseman's picture




Kilgore Trout's picture


NotApplicable's picture

01001110 01100101 01101111 00101100 00100000 01101001 01110011 00100000 01110100 01101000 01100001 01110100 00100000 01111001 01101111 01110101 00111111

urbanelf's picture

This is shocking news.

drink or die's picture

What's the latest ETA on hitting the debt ceiling?

mayhem_korner's picture



The "currently-authorized" debt ceiling...

NotApplicable's picture

Hit? You're making implications with that word that simply aren't true.

More like "shoving."

Outta my way!

XitSam's picture

Do you mean when is the roof going to be jacked up again?  With much emoting and gesticulating by Congress first, of course.

eclectic syncretist's picture

Get em' while they're hot.  Someday we'll look back on all this and say "those were the good old days"!

mayhem_korner's picture

Someday we'll look back on all this and say "those were the good old days"!


Yes - when $29 billion was a US Treasury auction rather than the price of a tankful of gas...

Ahmeexnal's picture

wha? ox pulled carts do not need gas.

mayhem_korner's picture



Yes, try to convince us your ox is for pulling carts.  We know better.

CrashisOptimistic's picture


Oxen are not special breeds.  They are normal cattle that have been trained from a very young age to pull.  

The bad news is cattle have been bred for over a century to be larger and have more meat on them.  This makes them eat more.  

So oxen we'll need in the near to intermediate future will require more harvest be hay (to get them through the winter) than was true 100 years ago.  It used to be about a 2:1 ratio of human food to animal food in acreage grown.  

It will be closer to 1:1.  This will force an even lower human population.

JimBowie1958's picture

Would you  please stop being so damned cheerful?


CrashisOptimistic's picture

Optimism is two things:

1) Pleasant to be around.

2) A very dangerous attitude in that it encourages risk taking.

Ahmeexnal's picture

You are right....ox pulled carts will be damn expensive.

Cheapest transport will be human pulled rickshaw. 

All you need is: carrot, string, stick, whip.

FORWARD! You're getting closer to your reward!

shovelhead's picture


That's very catchy...

Someone should use that as a slogan.

midgetrannyporn's picture

Timmah pushed teh QuEasy button.

hedgeless_horseman's picture



Saving money has been officially outlawed.

Everyone in the risk pool.  You too, granny.

Watch out for the algogators.

LawsofPhysics's picture

CNBC covering this as "a record high yield".

NotApplicable's picture

Original headline.

Record High Price, Record Low Yield

Editor at work. 

Record High Price, Record Low Yield


Record High Yield

XitSam's picture

OH at CNBC: You mean there's a difference?