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And just like that, SPY is yielding less than 10 year Treasuries
the price is wrong bitch(ez)
Or China finally walkin' the walk.
Probably both tightening expectation in US and reallocation of Chinese to Greek bonds. Even with a 90% haircut, they look attractive relative to US, and the European talk is only 50-60% haircut.
Also, bloom is off Op Twist. Tomorrow's auction could be interesting. 10 yr was pretty stinky. End of bullish bonds? Time for bullish equities? Real estate? Back to comoodities? Good reasons to have some cash (fiat though it is) while this shakes out.
Can you please explain to me how a bond with a 4.5% coupon trading near 40 is attractive vs. U.S. bonds if you thought the terms of the bond were going to be changed to 4.5% on 10?
Or were you planning on a 50% haircut for U.S. bonds in your comparison?
nobody to front run
That's what the primary dealers are there for - to buy all the notes nobody else wants. That's why they get to be primary dealers.
Exactly! I used to trade for one and I had to always put in multiple bids. The good bid for the amount I actually wanted to buy (usually covering shorts I'd set up unless market was on fire), a bid at a price I thought I'd be happy to own them (briefly, to sell to institutional and retail buyers), and well back just to prove my willingness to support the system. If shop didn't bid enough routinely, the primary dealershp would be revoked.
Today, those bids at 2.27 weren't planning to buy but are okay with and are still unloading for a profit right now. But remember, that means plenty bought at 2.24, 2.25, 2.26 as well. 2.271 is just where the last of the $21B were bought.
this is good....why..because ....welll....we the elite say soo.....now back to X Factor...where we measure who is the most useless, and we vote for them - that way teh fat useless people people feel better.
'I could have been a contender, but I have these fries to finish'!
LOL sure it was weak.
Looks like on the scoreboard of wall street it was just fine.
OR IS THE MARKET GOING OPEN DOWN 4000 pts one day?
Way to go ZH you've missed out on 10%-12% in a few weeks now.
Okay Doomsaying Bozo's
Congratulations fuck face! You're still net negative in inflation adjusted terms!
Keep buying, it will go up forever! Buy buy buy! QE3 is coming! The recovery is here at last!
On Jan 14th, 2000, the Dow closed at 11722.
Way to illustrate that you have absolutely no concept of whats going on.
Hepefully you have the courage of your convictions, take out a second mortgage and put everything into stocks, or as pointed out above sub inflation rate bonds. Invest your retirement money down to the last dime- its all going to the moon. No doubt you will make a killing, yes?
Just as the giant Krell furnaces would generate any amount of power needed to for the id monster to melt the door made from 24 inches of solid Krell metal, so Benocide will print whatever amount of money is neccessary to make sure an auction never fails.
Overall, an ugly auction although whether the reason for the weak demand is due to inflation expectations returning, or a capital reallocation from bonds into other assets, is for now unknown.
The answer is very known: there is not enough capital in the world to keep funding our unfunded deficits, at which point this is all the auctions really are: unfunded deficit spending trying to get plugged. Expect to continue to see weak bidding by indirects as China spends surpluses on Chinese banks, Europe having its own funding situation, Japan broke, the Federal Reserve not LSAP'ing, and U.S. tax-paying idiots gobbling up stocks because the great growth story has not arrived but are being purely suckered in by this manufactored rise in equities.
The great irony: when Treasuries actually go bidless and chaos ensues, the sheep will sell stocks and help plug the gap as equities begin their eloquent decline.
The other great irony? If you truly want a great CAGR (compounded average growth rate - for those lacking in financial jardon) and want to think long term returns and strong compounded buy and hold like resutls: shorting long term treasuries should produce no less than 15-20% compounded returns over the next 3 years. Take that Ben, Congress, and all you other scumsuckers who think you have it all under control.
$ 21 Billion?
the newly-printed or newly-received money is disappearing damned pretty fast, at this point, it seems. they have the "economic term" 'velocity of money'; may i suggest from slewie-nomics: the vaporiZation of money, aka pouring debt gasoline on a raging debt fire?
wait till the calendar gets rolling and the new year approaches the repo markets in europe: those dollars-for-dogshit are buying euros & francs recently? bullish for stocks?
Dr. Chairsatan's Wild Ride~~coming off the tracks in a location near you, soon?
doncha just love it when a plan comes together, BiCheZ?
Who are the primary dealers again?
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