• Sprott Money
    05/05/2016 - 06:02
    Why is a Deutsche Bank mouthpiece suggesting “negative retail deposit rates or perhaps wealth taxes”? The answer is to (supposedly) stimulate our economies.

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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Thu, 05/24/2012 - 13:15 | 2459333 fuu
fuu's picture

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

Thu, 05/24/2012 - 13:17 | 2459343 mayhem_korner
mayhem_korner's picture

 

 

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

Thu, 05/24/2012 - 13:18 | 2459348 Ahmeexnal
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".

Thu, 05/24/2012 - 13:20 | 2459354 Mountainview
Mountainview's picture

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

Thu, 05/24/2012 - 13:23 | 2459366 mayhem_korner
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.

Thu, 05/24/2012 - 13:30 | 2459394 CrashisOptimistic
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?

Thu, 05/24/2012 - 13:36 | 2459423 Quinvarius
Quinvarius's picture

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

Thu, 05/24/2012 - 13:43 | 2459448 CrashisOptimistic
CrashisOptimistic's picture

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

You may not use it in defense of anything.

Thu, 05/24/2012 - 13:45 | 2459462 mayhem_korner
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.

Thu, 05/24/2012 - 14:06 | 2459554 LawsofPhysics
LawsofPhysics's picture

"Problem solved with the application of basic economics"

So we can print oil now, fucking awesome.

Thu, 05/24/2012 - 13:43 | 2459452 BalanceOrBust
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.

Thu, 05/24/2012 - 13:47 | 2459469 CrashisOptimistic
CrashisOptimistic's picture

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

So has the price of your house.

Thu, 05/24/2012 - 16:40 | 2460152 post turtle saver
post turtle saver's picture

Deflation for luxuries, Inflation for necessities.

Thu, 05/24/2012 - 13:47 | 2459466 NotApplicable
NotApplicable's picture

ZIRP 'til the day the dollar dies.

Thu, 05/24/2012 - 13:21 | 2459360 NotApplicable
NotApplicable's picture

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

Thu, 05/24/2012 - 13:23 | 2459364 ITrustMyGut
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~

(not)

Thu, 05/24/2012 - 13:20 | 2459356 zaphod
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?

Thu, 05/24/2012 - 13:24 | 2459367 NotApplicable
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.

Thu, 05/24/2012 - 13:34 | 2459416 catacl1sm
catacl1sm's picture

Build their own vault. HA! Take that banks!

Thu, 05/24/2012 - 13:48 | 2459470 NotApplicable
NotApplicable's picture

Why do you hate freedom and America?

Thu, 05/24/2012 - 13:23 | 2459368 mayhem_korner
mayhem_korner's picture

 

 

Dat U Timmay?

Thu, 05/24/2012 - 14:05 | 2459546 PivotalTrades
PivotalTrades's picture

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

Thu, 05/24/2012 - 13:24 | 2459370 fuu
fuu's picture

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

Thu, 05/24/2012 - 13:28 | 2459386 mayhem_korner
mayhem_korner's picture

 

 

+1 Very nice. 

Thu, 05/24/2012 - 13:49 | 2459481 Kilgore Trout
Kilgore Trout's picture

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

Thu, 05/24/2012 - 14:06 | 2459528 hedgeless_horseman
hedgeless_horseman's picture

 

 

01010011011001010110110001100101011000110111010000100000010101000110010101111000011101000000110100001010000011010000101001000011011101000111001001101100001011010100001100001101000010100000110100001010011010000111010001110100011100000011101000101111001011110111011101110111011101110010111001110010011011110111010101100010011000010110100101111000011010010110111001110100011001010111001001100001011000110111010001101001011101100110010100101110011000110110111101101101001011110101000001101100011000010111100101000111011100100110111101110101011011100110010000101111010000100110100101101110011000010111001001111001010111110100001101101111011011100111011001100101011100100111001101101001011011110110111000101111010000100110100101101110011000010111001001111001010111110101010001101111010111110101010001100101011110000111010000101110011000010111001101110000000011010000101000001101000010100100001101110100011100100110110000101101010101100000110100001010000011010000101001001100011001010111001101110011001000000111010001101000011000010110111000100000001101010010000001110011011001010110001101101111011011100110010001110011001011100010000000100000010101000110010101101100011011000010000001111001011011110111010100100000011001010110110101110000011011000110111101111001011001010111001000100000011101000110111100100000011011000110100101100111011010000111010001100101011011100010000001110101011100000010111000100000001000000100100101100110001000000110100101110100001000000111010001101111011011110110101100100000011110010110111101110101001000000110110001101111011011100110011101100101011100100010110000100000011101000110100001100101011011100010000001101101011000010111100101100010011001010010000001111001011011110111010100100000011100110110100001101111011101010110110001100100001000000110001001100101001000000110011001101001011100100110010101100100001011100000110100001010

Thu, 05/24/2012 - 14:42 | 2459707 Kilgore Trout
Kilgore Trout's picture

01010111011001010110110001101100001000000110111001101111011101110010000001111001011011110111010100100000011101000110010101101100011011000010000001101101011001010010111000100000010010010010011101101101001000000110001001101111011110000110100101101110011001110010000001110101011100000010000001101101011110010010000001110100011010000110100101101110011001110111001100101110

Thu, 05/24/2012 - 13:54 | 2459505 NotApplicable
NotApplicable's picture

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

Thu, 05/24/2012 - 14:17 | 2459609 fuu
fuu's picture

There is no spoon.

Thu, 05/24/2012 - 13:16 | 2459334 urbanelf
urbanelf's picture

This is shocking news.

Thu, 05/24/2012 - 13:17 | 2459340 drink or die
drink or die's picture

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

Thu, 05/24/2012 - 13:21 | 2459358 mayhem_korner
mayhem_korner's picture

 

 

The "currently-authorized" debt ceiling...

Thu, 05/24/2012 - 13:26 | 2459377 NotApplicable
NotApplicable's picture

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

More like "shoving."

Outta my way!

Thu, 05/24/2012 - 13:44 | 2459461 XitSam
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.

Thu, 05/24/2012 - 13:17 | 2459342 eclectic syncretist
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"!

Thu, 05/24/2012 - 13:18 | 2459345 mayhem_korner
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...

Thu, 05/24/2012 - 13:19 | 2459351 Ahmeexnal
Ahmeexnal's picture

wha? ox pulled carts do not need gas.

Thu, 05/24/2012 - 13:29 | 2459392 mayhem_korner
mayhem_korner's picture

 

 

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

Thu, 05/24/2012 - 13:33 | 2459413 CrashisOptimistic
CrashisOptimistic's picture

Tidbit.

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.

Thu, 05/24/2012 - 13:40 | 2459437 JimBowie1958
JimBowie1958's picture

Would you  please stop being so damned cheerful?

/s

Thu, 05/24/2012 - 13:45 | 2459460 CrashisOptimistic
CrashisOptimistic's picture

Optimism is two things:

1) Pleasant to be around.

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

Thu, 05/24/2012 - 13:58 | 2459513 Ahmeexnal
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!

Thu, 05/24/2012 - 14:07 | 2459559 shovelhead
shovelhead's picture

Forward!

That's very catchy...

Someone should use that as a slogan.

Thu, 05/24/2012 - 15:12 | 2459834 roadhazard
roadhazard's picture

ox farts = global warming.

Thu, 05/24/2012 - 16:28 | 2460108 earleflorida
earleflorida's picture

de`Oxfam... 

Thu, 05/24/2012 - 13:18 | 2459347 midgetrannyporn
midgetrannyporn's picture

Timmah pushed teh QuEasy button.

Thu, 05/24/2012 - 13:22 | 2459350 hedgeless_horseman
hedgeless_horseman's picture

 

 

Saving money has been officially outlawed.

Everyone in the risk pool.  You too, granny.

Watch out for the algogators.

Thu, 05/24/2012 - 13:20 | 2459353 LawsofPhysics
LawsofPhysics's picture

CNBC covering this as "a record high yield".

Thu, 05/24/2012 - 13:32 | 2459405 NotApplicable
NotApplicable's picture

Original headline.

Record High Price, Record Low Yield

Editor at work. 

Record High Price, Record Low Yield

Result

Record High Yield


Thu, 05/24/2012 - 13:48 | 2459472 XitSam
XitSam's picture

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

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