Treasury Sells $24 Billion in 10 Year Notes at All-Time Low 1.81%

May 9, 2012 By 11 Comments

SAFETY!!

The Treasury has just completed a $24 Billion 10 year note auction, which priced at an average yield of 1.81%, with a high of 1.855%, and a low of 1.7%.
This is an ALL-TIME RECORD LOW FOR THE US 10-YEAR!!
Primary dealers took down $10.9 Billion or 45.4%, indirects took down $9.3 Billion or 38.75%

Clearly the entire developed world is still fleeing to the perceived safe haven of treasuries as Europe collapses.  As the dollar’s fundamentals have deteriorated significantly since the last crisis in 2008, it won’t be long before these traders and funds realized they have ran from the burning house into the burning barn, and should have ran to the last remaining and ultimate safe havens of physical gold and silver.

Full details from the Treasury:

http://treasurydirect.gov/instit/annceresult/press/preanre/2012/R_20120509_1.pdf


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Comments

  1. Avatar of Jake Jake says:
    May 9, 2012 at 1:50 PM

  2. Avatar of Flying Wombat Flying Wombat says:
    May 9, 2012 at 2:09 PM

    Hah ha, that’s funny Jake.  Heck, I wonder if anyone under 30 has even seen one of those things on TV (the real ones).

    If it wasn’t for all the Euro-zone troubles in the last year, the US would have already had to launch QE-3 out in the open.  Instead, the flight capital has been moving to the US, supporting the US bond market. 

    That game is getting old …

  3. Avatar of 2 OZ. 2 OZ. says:
    May 9, 2012 at 2:14 PM

    Wombat, As stated earlier by numerous people here, “as Spain goes, the the Euro, dummies will flock to treasuries only to have to leave them soon and zip over to the PM’s.

  4. Avatar of Flying Wombat Flying Wombat says:
    May 9, 2012 at 2:26 PM

    Actually, the movement to PMs is already happening.  It has been masked by manipulation and liquidation among holders forced to liquidate on account of margin calls. 

    2 OZ, I agree with your comment.  That chain of events will happen too.  But it’s still important to point out that flight capital is already moving into the PMs.  It just hasn’t been visible yet other than the phenomena of strong support and the lack of climax selling normally seen during big corrections.

  5. Avatar of 2 OZ. 2 OZ. says:
    May 9, 2012 at 2:31 PM

    Got interrupted. Let’s see, 1.81% interest and inflation is +/-2% (per the experts) so you are losing -0.19%. This is really negative interest rate? When will they wake up?  Oh, by the way, let’s define expert. We’ll break it down.

    Ex – Has been
    Spert – A drip from….. where ever you are thinking.
    So, Expert is a has been drip.
  6. Avatar of onza onza says:
    May 9, 2012 at 3:21 PM

    Whoever bought these is sure to lose value and it boggles the mind to think these buyers are in charge of other people’s money.  What could they possibly hope to gain aside from commissions?

  7. Avatar of 2 OZ. 2 OZ. says:
    May 9, 2012 at 3:24 PM

    10-4 that Wombat. Hidden flight I would call it. The MSM isn’t going to tell it until it’s too late.

  8. Avatar of AGXIIK AGXIIK says:
    May 9, 2012 at 4:00 PM

    Due to ZIRP there will soon be not a single asset worth buying that yields anything but negative returns. If you want a really good screwing buy some 3 yr TBonds   Or some of those negative return German bonds.  What a freaking cluster bleep.  It’s annoying more than anything.  2 OZ  I’ve tried to post about your question re Spain and silver shortages and prices but got timed out a couple of times   Spain–$5 trillion loss.  Spain’s PM are stolen by Russia and China.  War could result from that.  Silver and gold bounce along the bottom for a while on the fear and liquidity trades.  Price support comes from China and its BRICS allies They scoop up every penny of PM for their silver and gold back multi national currencies  We wont be invited to play.   Silver at $250 an ounce in 5 years, a timing that seems to fit the reserve currency time line.  If Willie’s speculation of $10-15,000 an ounce gold holds true then silver could crazy and shot up to $1,000 an ounce, getting back into a decent GTSR ration.

     Silver shortages are already here but have not been reflected in price the same way that tens of trillions of dollars have not shown up in some sort of near hyperinflationary orgasm of liquidity.  The dealer banks in Europe and the US are holding those reserves, loaning against them and creating lots of happy FRNS which will be unleased on the world soon enough  Then silver will go nuts.   Both are being supressed.  IMO

     

  9. Avatar of 2 OZ. 2 OZ. says:
    May 9, 2012 at 4:06 PM

    Onza,

    I believe the people have largely sold and have fled the bond market. Most of the buying has probably been by the ECB. We shall soon see.
  10. Avatar of aragornsos aragornsos says:
    May 9, 2012 at 4:22 PM

    it’s gonna get ugly eventually.  For now it seems like folks are still making the corner they’re painting themselves into smaller

  11. Avatar of Marchas45 Marchas45 says:
    May 9, 2012 at 5:56 PM

    Buy your bonds here, then watch them burn around the corner. Buy Physical People Aaaaaaaaaaaaa!!!!  Why don’t they Learn. Aaaaaaaaaaaaaaa!!!!

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