Treasury Sets New Record In Auctioning Off $104 Billion In Debt

June 18th, 2009 (3) Posted By Pat Dollard.

monopoly

CNBC:

The Treasury announced Thursday a record $104 billion worth of bond auctions for next week, part of its herculean efforts to finance a rescue of the world’s largest economy.

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.

Though next week’s total was broadly in line with expectations, worries about supply have weighed on the U.S. government bond market, which will see a mammoth $2 trillion worth of new debt issued this year.

“Maybe the Treasury market reacted a little negatively and it will continue to be like this,” said Suvrat Prakash, U.S. interest rate strategist with BNP Paribas in New York. “Supply announcements and auctions on the horizon will make the market a bit nervous about upcoming debt.”

Bond prices were lower already in anticipation of the Treasury’s announcement and continued to sell off in reaction.

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  • Sully

    We’re in deep shit.

  • FIU Alum

    This is going to be big over the next six months

    Will Bernacke buy and shell game this to the max or will China or Japan buy as a “favor”

    Who the fuck is going to buy a 30 Year Long Bond at 2.5%-3%. No fuckin way

    Anyone know of someone who purchased a 30 Year back in 1980? I believe the rate was 12%. Now thats a smart investment

    This and North Korea are going to be the stories of the Summer of 2009

    • Sully

      Notice the auctions are all short term notes. The Fed has already been told by ‘investors’ that long term notes are a non-starter. They see 10% plus in their future.
      If Barry doesn’t get unemployment heading down soon, and nothing he’s done so far makes that likely, there will be no choice but to start monetizing debt.