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From the Clearstation Bond Pits:

 

 

"Ran out of suckers, at least for the time being after such record size auction day after day. Not only the $18 blns being sold, the Repomen bought in $10 blns early this morning.

 

Given the TNX was near the lower bank of the dam, only a fool would be filling the bucket before asking higher yield in return. That's why the bid-to-cover ratio dropped dramatically from yesterday's 2.09 to 1.22.

 

Synchronized slides for both the $USD and $UST would be a double whammy. Let's see what the FED and BOJ would do in days to come."

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Here is some food for thought.

 

If they didn't want the ten year paper (which seems obivious in retrospect given the dollar action) then why would they want new mortgage paper? Maybe, just maybe, the rest of the world has had enough of Yankee IOUs and will be closing there collective bag of marbles and find somewhere else to riverboat.

But yields have fallen most of the way back already. :blink:

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First time in awhile the Goon Squad over at the PPT failed to smash gold on the close.

 

Interesting to see how Asia deals with gold with all the SARS mess, the bungled Treasury auction, the BOJ Jamming efforts, and all the rest.....

 

Gold is Money.

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Soft Patch or Quicksand????

 

FEED jawboning again.

 

 

Fed ready to act promptly if needed: Minutes by Rachel Koning

 

"The Federal Reserve stands ready to shore up the U.S. economic recovery, according to minutes of the Fed's March 18 meeting. Maintaining a "high degree of vigilance and a readiness to respond promptly," members continued to assess economic statistics some feel are skewed by short-term war and geopolitical worries. Some members in fact felt the central bank may have to respond with lower interest rates to help relieve the war uncertainties impact on business investment and consumer spending. Meanwhile, the

group met this week and as expected, the Federal Open Market Committee held its target federal funds rate steady at a 41-year low 1.25 percent. Some economists still think the Fed could cut rates in June."

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