This is a mother of an auction. And, there are more mothers coming. At some point this very stuffed baby, that the mothers (Geithner and Obama) keep feeding, explodes.
You really have to be insane to be buying long-term paper now, with rates low and record supply after record supply. This will not last and it, at some point, is going to end very badly.
Here are the scary auction details:
•$29 Billion in 91 Day Bills, October 26
•$30 Billion in 182 Day Bills, October 26
•$7 Billion in 4.5 Year TIPS, October 26
•$44 Billion in 2 Year Notes, October 27
•$41 Billion in 5 Year Notes, October 28
•$31 Billion in 7 Year Notes, October 29
Total: $182 Billion
The only play is to stay short long-term debt.Obama and Geithner will provide the supply. At some point the market cracks and bonds crash.
You really have to be insane to be buying long-term paper now, with rates low and record supply after record supply. This will not last and it, at some point, is going to end very badly.
Here are the scary auction details:
•$29 Billion in 91 Day Bills, October 26
•$30 Billion in 182 Day Bills, October 26
•$7 Billion in 4.5 Year TIPS, October 26
•$44 Billion in 2 Year Notes, October 27
•$41 Billion in 5 Year Notes, October 28
•$31 Billion in 7 Year Notes, October 29
Total: $182 Billion
The only play is to stay short long-term debt.Obama and Geithner will provide the supply. At some point the market cracks and bonds crash.
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