record T-bill auction going OK...

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Ready's picture
Ready
Status: Platinum Member (Offline)
Joined: Dec 30 2008
Posts: 897
record T-bill auction going OK...

I've been watching this one close, but it looks like there are still enough buyers of US debt, even at record levels.

http://www.reuters.com/article/bondsNews/idUSN1138416720090211

I'm sure we'll hear from Chris on these auctions shortly, especially after his last Martenson Report. If you are not a subscriber, you should be. The reports alone are worth the money.

best,

Rog

bearing01's picture
bearing01
Status: Silver Member (Offline)
Joined: Sep 8 2008
Posts: 153
Re: record T-bill auction going OK...

Is there any way to tell how much the Federal Reserve is buying?  I don't think they will let long term rates fall much more than what they are now. 

Ready's picture
Ready
Status: Platinum Member (Offline)
Joined: Dec 30 2008
Posts: 897
Re: record T-bill auction going OK...

bearing01 wrote:
Is there any way to tell how much the Federal Reserve is buying?  I don't think they will let long term rates fall much more than what they are now. 

The last Martenson Report discussed a large buy at the last minute by an undisclosed party during the previous auction. Chris makes a good case that it was the Fed incognito. I tend to agree, but I don't know how to prove it. I can't wait for the next report from Chris, I'm sure he'll discuss in detail what is going on. Again, if you are not a subscriber, you should be!!! I would expect another report in the next 2 days, so sign up now and you will have all the details.

Rog

plantguy90's picture
plantguy90
Status: Gold Member (Offline)
Joined: Jan 27 2009
Posts: 271
Re: record T-bill auction going OK...

The US is giving the China something of value, who knows what it is, in order to be able to borrow more money from them.  I think the FED buying on the sneak would be a slap in the face to all existing bondholders, so as much as that sounds like a possibility, I would tend to think Obama and Co. offered the creditors something that would appease.  Who knows, Obama isn't a fan of the military, maybe he just gave up some secret technology.  Maybe the US wont care so much about the Dalai Lama or go on so much about human rights abuses or democracy?  But thats just cynical speculation.  But something had to pop, and looks like it was that shiny soft yellow metal.  So the Creditors chose to continue playing the game to avoid any loss of face on all parties, but someone is taking that funny money and converting it into you-know-what.  My 2 cents.

 

 

cedar's picture
cedar
Status: Bronze Member (Offline)
Joined: Oct 7 2008
Posts: 96
Re: record T-bill auction going OK...

China has a serious drought in their northern farming regions. Just a guess, but perhaps the US offered food assistance if required.

Pandabonium's picture
Pandabonium
Status: Bronze Member (Offline)
Joined: Aug 30 2008
Posts: 61
Re: record T-bill auction going OK...

Multiple factors including the Fed itself buying and the fact that for many of the major players it's "the only game in town". 

This is no indicator on which to base one's personal decisions.  We are not countries with central banks.  We don't have to play their games, which will end badly for them.

plantguy90's picture
plantguy90
Status: Gold Member (Offline)
Joined: Jan 27 2009
Posts: 271
Re: record T-bill auction going OK...

Pandabonium wrote:
Multiple factors including the Fed itself buying and the fact that for many of the major players it's "the only game in town".

This is no indicator on which to base one's personal decisions.  We are not countries with central banks.  We don't have to play their games, which will end badly for them.

Agreed, but some of us spectators like a little action on the side (prudently, of course).  I certainly would like to see more chatter/opinions on where interest rates may go in the near term.  The longer perspective seems obvious; but then again we're not central banks.

 

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