Posted on 06/18/2009 9:14:47 AM PDT by Kartographer
NEW YORK) MarketWatch - The Treasury Department said Thursday it plans to sell $104 billion in short- and medium-term debt next week. It will auction $40 billion 2-year notes on Tuesday and $37 billion in 5-year notes the following day. Finally, $27 billion in 7-year notes will end the note auctions on Thursday. The amounts of 5- and 7-year debt are more than expected by Wrightson ICAP, a research firm specializing in government debt. The broader Treasury market remained lower, weighed by positive economic data. Benchmark 10-year note yields , which move inversely to price, rose 6 basis points to 3.76%.
(Excerpt) Read more at foxbusiness.com ...
What happens if no one buys them...
Chicken feed.
Japs take more than that with 'em on a weekend trip.
Don’t try to take them through Italian customs this time.
I think there’s a couple of Japanese guys who will scoop these up.
ping
Yeah, what became of that story of all the forged bonds in a suitcase?
I read the Japanese guys are missing....
I wonder how many of those bills I can fit in a suitcase.
Damn, six weeks before my home loan rate adjusts based on the 5 year securities rates. I’m guessing those rates are going up a good bit next week...
I heard there are some Japanese who are willing to hang on to them for a while, at least.
The Treasury has a plan - if no one buys, they will print more worthless money and buy the T-Bills.....instant revolving source of cash and credit...can’t beat that with a stick...funny thing is that these cretins think that’s gonna work for 4 years.
>> What happens if no one buys them...
Ben Bernanke will.
The snake will eat its own tail.
My husband was listening to Glen Beck this morning and he said Glen was talking about this. He wasn't able to give me many details. I didn't hear it so I am completely in the dark about it and came hear to see if I could learn more. What was the whole thing all about?
“The amounts of 5- and 7-year debt are more than expected by Wrightson ICAP, a research firm specializing in government debt.”
Not auctioning 10 year notes at all. From what I understand, a lot of consumer interest rates, especially mortgage rates, are tied to the 10 year notes. I wonder if the Treasury isn’t shifting to 5 & 7 year notes for this auction because they expect to have to raise the interest rates being paid on the notes in order to sell them. They may be trying to avoid raising the rates on 10 year notes by just not selling any right now.
Headline is missing 2 words:
ATTEMPT TO
My understanding is that any loan tied to 10-year Treasury rates could easily change to a new "comparable" benchmark rate if the U.S. Treasury stops floating 10-year debt. I'm reading a mortgage agreement in front of me right now that says exactly that.
Judging by recent actions, they may sit it out, or at the very least, demand a higher rate.
Next year's Obamanation budget will require at least $1.4 trillion in external borrowing (the projected size of the deficit). That's on a total budget of about $2.8 trillion, give or take.
In other words, 50% of next year's spending will need to be borrowed. No one needs a PhD in economics to figure out that's a huge risk. What if the Chinese, the Saudis, and the rest no longer want to lend to us? Or demand much higher rates?
Perhaps Urkel will consult his magic Teleprompter for the answer, and then read a speech telling us he is committed to cutting the deficit, even though he is increasing it by leaps and bounds. And those deficits are before his ridiculous ObamaCare socialized medicine "plan."
We are deep in it. And its not all "inherited" like Urkel claims.
Its an auction. They keep raising the interest rate until somebody buys them.
denninger has a few things on it at The Market Ticker, updated today.
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