The administration sure is learning how to take advantage of the Ritalin addicted, holiday sales overbonanza'ed (1% increase over last year's gruesome December performance surely must be terrific news) public. Not only did Obama hope the whole Fannie/Freddie BS would slip by unnoticed even as he paid the failed public servants over at the nationalized-in-perpetuity GSEs an insane amount of money, but this week the Cottonelle experts over at 1500 Pennsylvania Avenue tried to sneak a $118 billion in coupons and another $57 billion in bills, a total of $175 billion pieces worth of one-ply bidet replacements, for the last weekly auctions of the "noughties" (yes, apparently that is the name to this most recent lost decade, set to end in a few days. But don't worry Ben Shalom will be around to make sure its bubblicious legacy persists for much, much longer).
Amusingly, there is an increasingly acrimonious battle between the prop trading desks of bailout drama queens Morgan Stanley and Goldman Sachs over the future value of said Cottonelle substitute, the former seemingly believing that bonds are going much higher (with a report claiming that the 30 year is heading to 8% in 2010, who do you think MS' clients will be selling bonds to?), while Goldman getting increasingly nervous about the economy and having investors buy even more bonds with the 10 Year expected to somehow hit 3.25% (again, Goldman's prop traders will be happy dump said security to long-only idiot money).
The full breakdown of this week's action, which will see $101 billion auctioned off just today.
- $28 Billion in 13 Week Bills on December 28
- $29 Billion in 26 Week Bills on December 28
- $44 Billion in 2 Year Bonds on December 28
- $42 Billion in 5 Year Bonds on December 29
- $32 Billion in 7 Year Bonds on December 30
Below is an artist's rendering of what the last calm before $2.5 trillion UST 2010 $2.6 trillion in gross coupon supply ($1.8 trillion net) shitstorm looks like.