Short-term Treasurys fall after 5-year auction

AP/YahooNews ^ | 7/29/09 | SARA LEPRO

[Kartographer]

Short-term Treasury prices fell Wednesday, sending their yields higher, after a disappointing auction of $39 billion in five-year notes.

The auction's bid-to-cover ratio, a measure of demand, dropped to 1.92 percent from 2.58 percent at an auction of five-year notes in June. Indirect bids, an indication of foreign buying, tumbled to 37 percent of the total bids accepted, compared with 63 percent in June.

[Kartographer]

Come on China open that pockbook and say AHHHHH......

[the invisib1e hand]

holy mortgage-reset, batman!

[taxtruth]

World investors are backing off the US markets.

[C210N]

Uhhh... hello? Hello? Congresscritters... HELLo!!

...as they spend and borrow a few $trillion and add to the debt of my kids, their kids, their kids' kids...

[taxtruth]

Wall street is now called Sucker street by Asians investors.

[Lurker]

The auction's bid-to-cover ratio, a measure of demand, dropped to 1.92 percent from 2.58 percent

A 25% drop....

[Mama Shawna]

Hubby and I watched the chart plummet (in real time - he trades commodities) and the first thing I said was ‘Gee.. no one wants to buy our debt anymore, wonder why?’

Obamanation here we come! This man is so freaking clueless, along with our treasury secretary, Eddie Haskell.

[BAW]

Uh oh.

[Kartographer]

DAMN Foreign Investor! Don’t they believe in Hope and Change?

[Ghost of Philip Marlowe]

And he had the nerve to complain about the deficit he inherited. BUT NO MENTION OF HOW HE DOUBLED IT IN ONLY 6 MONTHS!

Unbelievable narcissism. Like I've never seen in my lifetime.

[JasonC]

The article is illiterate. It says the bid to cover ratio is 1.92 *percent*. Um, no not remotely. It is a ratio, and it is 1.92. Meaning people offered to buy about twice what the treasury needed to sell.

As for China, they continue to buy treasuries hand over fist, not that it matters.

The Cayman islands and Luxembourg buy more US financial assets than China does, and hold more as well. 95 million people in the UK and Canada outweigh 1.3 billion from China as investors in the US.

[JasonC]

No, they really aren't. The treasury has released the latest foreign assets position report and it is up oh a modest $550 billion over the past year.

Whoops, doom monger don't tell you that do they? But it is a mechanical consequence of the trade deficit.

Meanwhile the headline oohs and ahhs over a move of 0.05% in the 5 year note, up to a ruinous 2.64% from 2.59%. Wow that's dire. Oh and the same day the 10 year droped 0.02% and the 30 year 0.04%. The very steep yield curve is "shallow-ing", that is all.

[556x45]

Take a number, they’re too busy ‘fixing’ things at the moment and can’t be disturbed.

[Reagan69]

So, how’s that “Hope & Change” workin out for everyone?

[griswold3]

Next....
http://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/A_20090723_1.pdf

[cherry]

"DAMN Foreign Investor! Don’t they believe in Hope and Change?"

they be racist!...and they be stupidly!

[kenn5]

Not to worry, the Federal Reserve will print up the money and buy them.

[TSgt]

We are all going to be millionaires!

[Kartographer]

I know! Why don’t we just have the FEd buy the Treasurys? Yeah that will work. :^)

[Kartographer]

YES WE CAN! Soon every pay day for those of us lucky enough to still be working are going to be millionaires!