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US Issues New 5 Year Bonds At Lowest Bid To Cover Since August, Sends Total US Debt Over $15.6 trillion
Today's $35 billion 5 Year auction was not very pretty: coming at a high yield of 1.04%, it was a tail to the When Issued trading 1.03% at 1pm, and the highest rate since October's 1.055%, and the first 1%+ print in 2012. Also notable was the drop in the Bid To Cover to 2.85, which in turn was the lowest since the 2.71 in August of last year. Aside from that the internals were in line: Directs took down 11.3%, in line with the 11.4% average, Indiricts 41.9%, just below the 42.8% TTM average, and the remainder was Dealers, whose 46.8% allocation was just slightly lower than the 45.8% they have taken down previously. All in all another auction that squeezed by courtesy of the PD syndicate, which as has been noted before, is already loaded to the gills with the short-term bonds that Uncle Ben is selling. More importantly, this is the auction that in conjunction with tomorrow's last of three, will send total US debt higher by another $39 billion and brings it to a fresh record high $15.6 trillion. There is now about $700 billion in debt issuance capacity before the debt ceiling is breached again. At this run rate, this is just under 6 months before the debt ceiling scandal ramp up again, or just in time to be used by the GOP as the biggest trump card in the Obama reelection debates, just as we suggested here first back in February.
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warning, you are entering a demolition zone........hard hats mandatory.....and please DO NOT STAND UNDER THE TOPPLING TOWER OF DEBT........................
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Who gets paid for fucking a laptop? I guess this guy's sister does. Most whores get paid for fucking on a table top or pool top like Marylyn Chambers.
http://www.youtube.com/watch?v=7duNcNVw3kY
Fun, fun, fun, 'till daddy took the T-Bills away!
Don't worry, the Republicans will cave in just like they did......well......everytime!
Why haven't treasuries collapsed already? Is the exponentially growing CDS and interest rate swap market holding this thing together?
1981 ... US 10-year Treasury note ... 15.84% yield ...
1981 ... US 30-year Treasury bond ... 15.25% yield ...
A long way back up
Keep your head down and keep printing....
Anyone treatens to pay back that kind of debt and I'll vote to impeach them. I don't think it is much of a trump card at this point.
weird, my wife closed an old capital one direct banking account with a residual amount of money in it in february. they sent her a check for the account balance. i deposited it at our business and it came back nsf. wtf?
I'll bet they charged the account a closing fee afterwards.
When the Middle east and Asia no longer accepts being taken as fools/chumps and refuses US currency that's when the real fun for Bernanke and the Fed begins! Bernanke can make like Zimbabwe. Until then Bernanke can buy US debt with money from thin air and destroy the US dollar.
the check was drawn on their bank. not her account. and it was not this account has been closed, it was nsf. the check was sent to her after the account was closed.
very,very weird
Speaking of wierd, I've noticed a change in the delays for fund transfers in the last month. What used to take just 1 or 2 business days now takes 4 or 5 business days. Admittedly, I've only taken a few sample points but something is messed up.
Wake me up when it goes bidless, until then this circle jerk is the same as it ever was.
Schiff in Forbes yesterday said US will have a bond crash in 2013, I'm more with Kyle Bass who thinks it will be in 3-5 yrs. What do you guys think?