No Takers for the Treasury: Record 30y T-Bill Auction Goes Bust
I want Susan Powter to bust into the Treasury and bitchslap these people while howling "STOP THE INSANITY!!"
Can someone please get on that?
Treasury 30-year bonds declined after a record $16 billion sale of the debt, the last of this week’s three offerings totaling $81 billion, drew the weakest demand since May.
The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.26, the least since May and below an average of 2.39 at the last 10 auctions. The bonds drew a yield of 4.469 percent, higher than the forecast of 4.424 percent in a Bloomberg News survey of five of the Federal Reserve’s 18 primary dealers.
“It was a mediocre auction,” said William Larkin, a fixed-income portfolio manager in Salem, Massachusetts, at Cabot Money Management, which manages $500 million. “The longer end is embedded with more risk. With the stimulus and inflationary policies, you don’t want to hold a long term bond with a low yield.”
The existing 30-year bond yield rose four basis points to 4.45 percent at 1:15 p.m. in New York, according to BGCantor Market Data.
Indirect bidders, an investor class that includes foreign central banks, bought 44 percent of the bonds at today’s auction. They purchased 34.5 percent at the October sale. The average for the past 10 auctions is 40.3 percent.
Notice that last statement. Foreign central banks - like the same ones engaged in billions in currency swaps with our own Zimbabwe Ben?
I remember years ago when I was a smart-assed 21 year old I got chased out of my corner store because I called the owner a prick (he was) and could never return. Well sometimes a girl needs a Racer 5 and a pack of Camels at 1:35 in the morning so what did I do? Slip my roommate a $20 and send her down to the corner to grab my goodies.
With me, kids? I certainly hope so. WC Varones knows what I'm talking about.