UPDATE: Treasurys Extend Losses After Lousy 30-Year Auction
They are blaming it on people moving out of bonds and into stocks because of the "optimism"... yeah right!
(Update to add details of the 30-year auction; intraday 10-year, 30-year Treasury yields; new comments; German, UK bond yields and decisions from ECB and BOE.)
By Min Zeng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Treasurys added to their losses Thursday afternoon, driven by a poor $14-billion 30-year bond auction, the last leg of the government's $71 billion May refunding this week.
Selling intensified after the auction at 1 p.m. EDT, pushing the 10-year and 30-year Treasury yields to fresh session highs and the highest levels since November. The 30-year bond's yield jumped more than 20 basis points while the yield on the seven-year note and the 10-year note rose more than 14 basis points.
At the peak of the selling, the 10-year note's yield touched 3.34% while the 30-year bond's yield hit 4.309%. The 10-year yield breached 3% on April 24, breaking out of the trading range of 2.5%-3% since mid-March, and since then, the yield has been pushed higher despite $92.2 billion Treasury purchases from the Federal Reserve since late March.
In recent trading, the two-year note's price was down 3/32 at 99 23/32 to yield 1.01%, the 10-year note was down 1 6/32 at 98 11/32 to yield 3.32%. The 30-year bond was down 3 9/32 to 86 24/32 to yield 4.29%. Bond yields move inversely to prices.
In a sharp contrast with the first two legs of the refunding in three-year note and 10-year note auctions earlier this week, the auctioned yield on the 30-year bond came at 4.288%, much higher than 4.203% traded just before the auction.
The higher yield, which is called a tail in technical terms, suggests lackluster demand from investors for the long bond as economic data signaling the worst of the recession is over, reducing the appeal of holding safe-haven government securities.
Where will these $ come from?: 10 big banks need $75B more!
Stress test results. This fact was buried in the middle of the article:
"The tests found that if the recession were to worsen, losses at the 19 stress-tested firms during 2009 and 2010 could total $600 billion."
From where will they get this amount of capital? The printing presses (and super-inflation) will be revving-up even faster.
Stress tests find 10 big banks need $75B more
Excerpts:
By DANIEL WAGNER and JEANNINE AVERSA, AP Business Writers Daniel Wagner And Jeannine Aversa, Ap Business Writers – 3 mins ago
WASHINGTON – The government's long-awaited "stress-test" results have found that 10 of the nation's 19 largest banks need a total of about $75 billion in new capital to withstand losses if the recession worsened. The Federal Reserve's findings, released Thursday, show the financial system, like the overall economy, is healing but not yet healed.
The banks that need more capital will have until June 8 to develop a plan and have it approved by their regulators.
Among the 10 banks that need to raise more capital, the tests said Bank of America Corp. needs by far the most: $33.9 billion. Wells Fargo & Co. requires $13.7 billion, GMAC LLC $11.5 billion, Citigroup Inc. $5.5 billion and Morgan Stanley $1.8 billion.
The other five requiring capital are all regional banks: Regions Financial Corp. of Birmingham, Ala., needs to raise $2.5 billion; SunTrust Banks Inc. of Atlanta $2.2 billion; KeyCorp of Cleveland $1.8 billion; Fifth Third Bancorp of Cincinnati $1.1 billion; and PNC Financial Services Group Inc. of Pittsburgh $600 million.
The tests found that if the recession were to worsen, losses at the 19 stress-tested firms during 2009 and 2010 could total $600 billion.
Full story:
http://news.yahoo.com/s/ap/us_banks_stress_tests
So that's why TBT was up
So that's why TBT was up 4.6% today. That's a "double short" ETF that bets against 20-30 year Treasury bond prices. I bought it in January. Been berry, berry good to me.
Yep, nice play
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It
death of the dollar...
death of the dollar... notice how it has resumed heading downward.
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
how many billions did the
how many billions did the fed spend to buy tbills a few months ago?? 360 billion?? wonder how much they will have to print up this time..
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I think the Fed only
I think the Fed only threatened to buy long bonds. It's been buying shorter maturities.
lmao.. according to jzneff
lmao.. according to jzneff there is nothing to fear... looks like the fed will come in and monetize the debt some more.. and what does that lead to?? anyone??
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Looks like China Pulled The Plug
China also pulled the plug on the stock market "rally". Look out below, I don't think Goldman and their white shoe banking buddies control China (yet), when China says its over, its over. The debtor is prisoner to the lender.
Maybe we can offer them cars and trucks instead of T-bills.
Socialists are Everywhere
Socialists are Everywhere
remeber all the "optimists"
remember all the "optimists" on this site telling us that China couldn't live without us.... lmao... wrong... wrong... wrong..... according to the baltic dry index it looks like they have been living without us for a while.. We are in Deep trouble folks...
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
not only that we have been
not only that we have been in this recession/depression since Dec. of 07.. and their economy is still growing at a 6.5 to 7% clip... we here in this country would kill for a 3% growth in our economy.. that would be boom times...
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Maybe we can offer them
Maybe we can offer them Detroit. Don't they need the space?
Sorry...
They've already used "government land" as collateral.
China fears bond crisis as it slams quantitative easing
More information that super-inflation is coming sooner rather than later.
China has given its clearest warning to date that emergency monetary stimulus by Western governments risks setting off worldwide inflation and undermining global bond markets.
By Ambrose Evans-Pritchard
Last Updated: 1:13PM BST 07 May 2009
"A policy mistake made by some major central bank may bring inflation risks to the whole world," said the People's Central Bank in its quarterly report.
"As more and more economies are adopting unconventional monetary policies, such as quantitative easing (QE), major currencies' devaluation risks may rise," it said. The bank fears a "big consolidation" in the bond markets, clearly anxious that interest yields will surge as western states try to exit their QE experiment.
"There is a significant shift taking place in China. They are concerned about the stability of the global financial system so they are not going to sell US bonds they already have. But they are still accumulating $40bn of fresh reserves each month, and they are going to be much more careful where they invest it," he said.
More:
http://www.telegraph.co.uk/finance/newsbysector/banksandfina...
China is getting scared.
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It
Not scared...
they can just do math.
Now if only the American public could, we'll be ok.
Oh wait! Soon there will be an equation that even the sheeple can understand....
{ 0$ = I'm Homeless }
Maybe then we can get to what needs done.
~Live life to its fullest, with an open heart, open arms and most important... an open mind~
China does not want them anymore! Critical (bad) News
"The auction is big news because now it's showing that maybe the Chinese don't want our bonds. If the cost of capital for the United States becomes more expensive, then the recession is going to take that much longer to get out of," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
"Mortgage rates will go higher, which will make it less attractive to buy a home again. So, it's back where we started."
http://finance.yahoo.com/news/Sliding-tech-stocks-drag-Wall-...
thats why China has been
thats why China has been buying gold, silver and every other commodity on the down low... oh but those chines are a bunch of peasant farmers still usuing outhouses with no running water.. paleeeease.... who was it in here that told us the Chinese need us more then we need them? who was it? jz??
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
The market...
is starting to control interest rates again.
This is going to be rough.