The Treasury announced another CMB, along with the usual 4 week bill. The two will add a total of $40 billion in new supply to be auctioned tomorrow and settled Thursday. That should make for some ugliness. Making matters worse however, will be Wednesday’s announcement of 3 and 10 year notes and 30 year bonds to be auctioned next week. Look for a ton of new supply in those. One of these days Alice, we can probably look forward to more weeks where new supply exceeds $100 billion, like last October, and we know what happened then.
Today however, some well timed fear mongering by Barrons over the weekend reignited the buying panic into Treasuries. You don’t think that has anything to do with next week’s massive refunding of long term Treasury paper do you? Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.