Thursday, June 18, 2009

Here They Come

Like I said, you will be able to make a career out of shorting Treasury securities.

The Treasury has announced a record $104 billion worth of bond auctions for next week.

The sales will exceed the previous record of $101 billion set in auctions that took place in the last week of April and consist of two-year, five-year and seven-year securities. That record was matched by another $101 billion week in May.

The Treasury is likely to raise about $85 billion in net new cash given that there are about $19 billion worth of coupon securities maturing during the week.

The Treasury's include $40 billion in 2-year notes on Tuesday, $37 billion 5-year notes on Wednesday and $27 billion in 7-year notes on June 25.

The benchmark 10-year note's price was down 28/32 and its yield, which moves inversely, was 3.81 percent, up from 3.70 percent late Wednesday but still below the eight-month high of 4 percent set last week.


  1. Wenzel,

    Is there a reason why you will not be making a fortune shorting Treasuries or advising a hedge fund or something like that on how to short Treasuries?

  2. @ Taylor

    I provide consultations to some private money managers/investment partnerships.