Posts Tagged ‘ Auction ’

The Treasury announced today that it would replenish its rainy day fund (SFP- Supplementary Financing Program at the Fed to the tune of $195 billion, bringing the total on deposit back to $200 billion, where it was before the great drawdown of last October. The Treasury will do that by selling $25 billion per...
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The masters of yield suppression fell down on the job today. 10 year yields at the auction popped up 5 basis points from yesterday’s levels in the market. Prior to the auction there was no news “hook” that they could use to generate some selling in stocks in order to push the yields down....
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The 4 week bill auction will be smaller than we expected, resulting in “just” $70 billion in net new paper this week.  The market showed some signs of strain. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within...
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The week just past was easy in terms of new Treasury supply, with just the 4, 13, and 26 week bill auctions. Those are the weeks where the Treasury and Fed don’t need to prop the Treasury market because the government isn’t selling longer term debt. That changes next week with $60 billion in...
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A few of us were reminiscing this weekend over on the Stool Pigeons Wire about certain calls on the housing market made by yours truly back in mid decade, the biggest one being that I sold my house in Florida in June of 2005–actually April, with a June closing. Sold it myself in fact,...
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The Fed and Treasury have lots of balls in the air this week, and I guess we can watch in amazement as they continue their Great Wallenda  high wire act and dig themselves into a greater hole.  Today (Nov. 24) we have another two year T-note auction on tap totaling $44 billion, of which...
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The Treasury finished up a light week with a 4 week bill auction that drew another wave of panic buying keep the rate near zero. There’s no real sign of a letup to the mania, as terrified investors continue to seek the “safety” of the shortest term Treasuries. Panic behavior of this nature...
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The Fed bought a small amount of long term Treasuries today, but not enough to explain the strong performance of the 5 year note auction. Considering the $98 billion in new Treasury supply this week, including $91 billion in new notes, it’s miraculous that both stocks and bonds have held up as well as...
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The Treasury completed its weekly round of auctions today with a 70 day CMB rollover. The indirect bid, which had been strong at Monday’s auction, fell off the table at Tuesday’s 4 week bill auction, and at today’s CMB auction. The overall indirect bid was down for the third time in the past 4...
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The Treasury benefited from a “coincidental” selloff in the stock market that was accompanied by a sharp drop in Treasury yields this morning, lasting, “coincidentally”, until the exact moment that the $42 billion two year note auction was completed. Once that little piece of work was accomplished, surprise, surprise, the stock market rallied and...
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The 4 week bill auction was again very strong, signaling no diminution of strong buying interest from FCBs and others. So the game can go on. It had better. The Treasury released its monthly statement for June late yesterday and it revealed that revenues covered only 70% of outlays, continuing a weakening trend that...
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Pressed by a low cash balance, the Treasury announced on Monday that it would sell CMBs to roll over $35 billion in expiring CMBs. It also increased the size of the 4 week bill auction by $9 billion above the amount to be rolled over. These actions result in a total of $15 billion...
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Relatively strong results in the 2 year note auction were ballyhooed in the financial media today, but in reality the performance was simply borrowed from the bill auctions on Monday and earlier Tuesday. Taken as a whole there was no uptick in demand evident. That was the easy part as the market got help...
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The market sailed through 3 Treasury auctions unscathed today. 4 week bills, 52 week bills, and 3 year notes all went off without a hitch, raising $40 billion in new cash. The market had no trouble absorbing the new supply, thanks to continued panic levels of buying and support from Ben and Co. Bid/cover...
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The Treasury finished off a busy week with a 70 day CMB auction that showed no sign of weakening in indirect bidding. That was true for the week as a whole. If the FCBs are backing off, that didn’t show up in this data. Perhaps they did some selling in the secondary market, which...
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The Treasury held a 4 week bill auction and a 5 year note auction. Demand was strong at both, with a strong indirect bid. There’s no sign yet of a buyers’ strike by FCBs. The Fed stayed out of the market today. Click here to download complete report in pdf format (Professional...
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On the Treasury front, this week’s paydowns were only $13 billion, but next week the Treasury will swing to a huge negative influence as it dumps mass quantities of new supplies of 3, 5 and 7 year notes on the market. Depending on the size of the 4 week bill auction and whether or...
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The Treasury sold 10 year notes today and everyone was busy proclaiming how well the auction went. I suspect that the buyers were thrilled when bond prices surged after the auction was completed. But compared to last month’s 10 year note auction, this one was a failure. Click here to download complete...
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Stocks regained all of yesterday’s losses in spite of the immense barrage of Treasury supply this week. If this continues through the week one would be forced to conclude that animal spirits have returned to the market, at least temporarily, and that the Fed has done enough pumping to keep the system afloat for...
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Thursday is information overload day. After the market close, the Fed releases sketchy data on all of the week’s behind the scenes machinations, much of which it formerly published daily when it was using Open Market Operations daily. Now they no longer use OMO at all. Tonight’s data will include the H41 with all...
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The Treasury completed its auctions for this week. A trend of slightly reduced indirect bids continued. While the changes are small this could be the first small sign that investors and foreign central banks are beginning to experience a loss of the firepower and will necessary to continue to accumulate Treasuries at the rate...
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There were no Treasury auctions today. The Treasury announced next week’s 13 and 26 week bill auctions today, a day earlier than usual due to the holiday. Both will be for $28 billion. Both are $1 billion more than the TBAC estimate made on October 31. Both are $1 billion more than the amounts...
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Thursday’s Treasury auctions again showed minor cracks in the façade with a weak indirect bid on the 30 year bond and a smaller indirect bid on the CMB than on last week’s CMB auction. The Treasury announced next week’s schedule, and it appears that new supply next week will be around $30 billion, up...
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