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User Info Bonds Tanking... in forum [NotSoBreakingPrice]
070969
Posts: 988
Incept: 2009-04-10

CHICAGO
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EOM...

2009-05-21 11:28:55
Amgrace
Posts: 1224
Incept: 2008-02-15

New Castle, PA 16101
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Yes indeed! So how far do stocks have to fall these days to even get a bid back in the Treasury market....

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"In an informal survey at a recent meeting of 150 or so institutions, those admitting to feeling nervous about underexposure to risk outnumbered those feeling too aggressive by a neat 10 to 1! This also suggests how a speculative rally can keep going longer than reasonable investors expect." - Jeremy Grantham 07/2009
2009-05-21 11:36:16
Financeguy
Posts: 4720
Incept: 2007-08-10

Charlotte
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One of these days they are going to fall in tandem and keep falling.....

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"Granted, if you are not into Barbara Streisand and creme brulee, South Beach could be a tad lonely." Eleua
2009-05-21 11:51:50
Randy123
Posts: 1382
Incept: 2008-09-24
New Jersey
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Yep, ugly day.

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Mliu is my hero. Captain melamine.
2009-05-21 11:52:31
Schwantz
Posts: 4681
Incept: 2007-11-12

Monkey Do
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They'd better crash the market quick..

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Dives sum, si non reddo eis quibus debeo
Smash the Keynesian idiocracy!
2009-05-21 11:54:25
Rdaniels
Posts: 128
Incept: 2007-11-30

Indiana
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That's a hellava reversal.

2009-05-21 11:54:49
Randy123
Posts: 1382
Incept: 2008-09-24
New Jersey
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They need to break 7500 and they know it.

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Mliu is my hero. Captain melamine.
2009-05-21 11:55:51
Tbear
Posts: 2373
Incept: 2007-10-30

Tug Hill
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Treasury bot $7.4 Billion.

Problem is, $45.7 Bil were offered.

oooops.


FAIL

2009-05-21 12:11:46
Decoudres
Posts: 23
Incept: 2007-11-28
Charlotte
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Yeah, WTF??? That's 8 bps straight up. Was there a bad auction today or are the bond vigilanties not liking the idea of more money out to GMAC, etc?

2009-05-21 12:14:04
Dashingdwl
Posts: 4038
Incept: 2007-06-26

los angeles
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May 21, 2009, 11:11 a.m. EST
Treasury to sell $101 billion in debt next week

NEW YORK (MarketWatch) -- The Treasury Department said Thursday it plans to sell $101 billion in debt next week in its monthly round of shorter-term note offerings. The government will sell $40 billion in 2-year notes (UST2YR 0.83, 0.00, -0.48%) on Tuesday, matching the amount expected by Wrightson ICAP. It will also offer $35 billion in 5-year notes (UST5YR 2.01, -0.01, -0.69%) the following day and $28 billion in 7-year notes next Thursday. The 7-year security was reintroduced in March to help the government spread out the increasing debt issuance needed to fund all of lawmakers' stimulus plans and the Fed's programs to stabilize financial markets

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Think Green Tip.
2009-05-21 12:14:22
Psgirl
Posts: 2253
Incept: 2009-02-18

Online
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Anyone know what the reaction to this should be in the equity market?

2009-05-21 12:14:49
Genesis
Posts: 66462
Incept: 2007-06-26
A True American Patriot!
Royal Flush!
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Ben buys = Money goes into primary dealers (cash)

It has to go SOMEWHERE. Guess where it might go?

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I used to play flute; I wonder if I can play a fife?
I incite prosecutors to create "Bubba Sausage Parking Lot" projects
Darrell Issa has a middle finger and knows how to use it - Me
2009-05-21 12:16:47
Phirang
Posts: 8083
Incept: 2008-10-25

Fields of Cannae
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BAC, STT, JPM, and every other debt-ridden corpse that's floating today!

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In the space of a weekend, I nearly lost everything and got it all back. - Clayton Riddell
2009-05-21 12:17:49
Schwantz
Posts: 4681
Incept: 2007-11-12

Monkey Do
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Meanwhile the bigger money moves out of everything US

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Dives sum, si non reddo eis quibus debeo
Smash the Keynesian idiocracy!
2009-05-21 12:18:35
Phirang
Posts: 8083
Incept: 2008-10-25

Fields of Cannae
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Paulson huge gold allocation looking smarter by the minute... hot damn!

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In the space of a weekend, I nearly lost everything and got it all back. - Clayton Riddell
2009-05-21 12:20:16
Decoudres
Posts: 23
Incept: 2007-11-28
Charlotte
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Isn't the Treasury SELLING the notes??? Thus, the primary dealers and other sovereign govts are the ones buying. At least we hope other coutries are still buying our debt - otherwise we're screwed.

Or am I reading this wrong?

2009-05-21 12:22:23
Dashingdwl
Posts: 4038
Incept: 2007-06-26

los angeles
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Ben bought today. $7 B to PDs.
Treasury selling next week. $100B from somewhere.

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Think Green Tip.
2009-05-21 12:23:33
Decoudres
Posts: 23
Incept: 2007-11-28
Charlotte
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3.31 now and still climbing - that's a hell of a woody.

2009-05-21 12:27:01
Creditcalmass
Posts: 997
Incept: 2008-06-04
4 train, NY
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Back down to 3.29, spiked to 3.32 though, trendline for the day still in play.

Something wicked this way comes (The Bond Market Monster)

2009-05-21 12:33:42
Ukyank
Posts: 906
Incept: 2008-10-09
Little village on a small island...austerity anyone?
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This flirting with 3.3 is worrysome....I came across some historical data today that some consider represents the trigger of the two great deflationary depressions in the USA....from memory the data was (these are from memory, trying to locate the source):

1853 : 10-year treasury yield : 3.4
1929 : 10-year treasury yield : 3.3

Can only assume this is critical level because it appears to be where the spreads begin to shrink (reach minimum) in a deleveraging environment...does this make sense?

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"The distinction between needs and wants will reveal itself like a sledgehammer." James Quinn, Jan 5, 2009
2009-05-21 13:00:37
Bartman
Posts: 400
Incept: 2007-08-11
TX
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Quote:
Ben buys = Money goes into primary dealers (cash)

It has to go SOMEWHERE. Guess where it might go?



Treasury is selling bonds throught PDs, right? Then doesn't the CASH go to Treasury? How would the PDs be able to use this cash (besides the fees they receive) at their discretion?

2009-05-21 13:11:06
Doctormad
Posts: 1777
Incept: 2007-09-09

Ohio
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Financeguy,

Quote:
One of these days they are going to fall in tandem and keep falling.....


Already starting to happen. This is setting up to be the third day in the past 4 weeks where bonds and stocks are going to be down together significantly (greater than 1.5%).



2009-05-21 13:14:00
Jeffrey_thomason
Posts: 397
Incept: 2009-03-11
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Doctormad wrote..

Financeguy,

Quote:

One of these days they are going to fall in tandem and keep falling.....



Already starting to happen. This is setting up to be the third day in the past 4 weeks where bonds and stocks are going to be down together significantly (greater than 1.5%).


Not to mention the USD Index as well, which I thought wasn't suppose to happen.

2009-05-21 13:20:45
Seabassbanker
Posts: 2622
Incept: 2008-03-09

HELL IF I KNOW
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yeah eur is on a rampage against bucky

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October 15th, 2007 Bernanke: "It is not the responsibility of the Federal Reserve - nor would it be appropriate - to protect lenders and investors from the consequences of their financial decisions." LIAR LIAR
2009-05-21 13:21:43
Leraconteur
Posts: 7189
Incept: 2007-12-03
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Thread in Rumour that the ECB's just got fed up. Also the bid/cover for the T auction was 6.17 : 1, Gold up to 950, equities tanking.

All in all, a huge mess.

2009-05-21 13:26:01
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