Go Back   This Blue Marble, a Global Current Events Discussion Forum > Main Floor > Economy

Economy Economy discussion forum. Discuss the politics and effects of the general economy and global economic collapse here. Please keep all politics out of the Finance and Investment subforum.

Reply
 
Thread Tools Search this Thread Display Modes
Old 08-12-2011, 10:18 AM   #1
Sonny
Senior Level 4
 
Sonny's Avatar
 
Join Date: Aug 2008
Posts: 4,408
Blog Entries: 1
Thanks: 296
Thanked 230 Times in 173 Posts
Default The U.S. auctioned $72 billion of notes and bonds

The U.S. auctioned $72 billion of notes and bonds

By Daniel Kruger - Aug 12, 2011 12:00 AM

The U.S. auctioned $72 billion of notes and bonds this week at the lowest average yield for a refunding on record, saving taxpayers $647 million in interest payments during the life of the securities less than a week after Standard & Poor’s removed the nation’s AAA rating.

The Treasury Department paid an average yield of 2.13 percent on the three-, 10- and 30-year securities, less than the previous refunding auctions in May of 3 percent and below the former record of 2.59 percent in February 2009, according to data compiled by Bloomberg. The government began selling 30-year bonds on a regular schedule in 1977 as part of its so-called quarterly refunding.

!
__________________

--Thomas Jefferson, 1743-1826--

"I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt."
--
Sonny is offline   Reply With Quote
Old 08-12-2011, 09:33 PM   #2
Ross
Senior Level 6
 
Ross's Avatar
 
Join Date: Aug 2008
Location: Melbourne Australia
Posts: 8,946
Thanks: 578
Thanked 1,133 Times in 669 Posts
If I am interpreting this correctly it is not necessarily good news.

People are running scared and seeking venues for capital preservation .

The primary refuges being US treasuries and precious metals.

Some of the implications are .......

# Putting more liquidity in to the system may not work
depending on how it is done . When borrowers are scared of borrowing
and lenders are scared of lending there is no point making more
liquidity available to banks.

# If you print money with the intent of giving it to people to spend
that may not work either because it could make the public more afraid of
holding cash ( perceived as a risky asset ) and that in turn may
accelerate a rush to capital preservation and a deflationary spiral .
__________________
All paper is a short position on gold.

“Gold is money. Everything else is credit.”
.
Ross is offline   Reply With Quote
Old 08-13-2011, 01:19 AM   #3
gsgs
searching for truth
 
gsgs's Avatar
 
Join Date: Sep 2008
Location: Germany
Posts: 3,197
Thanks: 0
Thanked 27 Times in 24 Posts
who bought them ?
didn't Obama officially manipulate the bond market
in 2009 with $300B (AFAIR)
__________________
a chart says more than 1000 words
my links: http://bit.ly/hFI7H
gsgs is offline   Reply With Quote
Old 08-13-2011, 10:59 AM   #4
Ross
Senior Level 6
 
Ross's Avatar
 
Join Date: Aug 2008
Location: Melbourne Australia
Posts: 8,946
Thanks: 578
Thanked 1,133 Times in 669 Posts
I believe the evidence suggests mainly genuine buyers rather
than manipulation .

If so then such a result is consistent with fear driven purchase
of Treasuries . After gold US treasuries are widely perceived as
the least worse option as refuge for wealth .
__________________
All paper is a short position on gold.

“Gold is money. Everything else is credit.”
.
Ross is offline   Reply With Quote
Old 08-13-2011, 01:19 PM   #5
Ought Six
Dismember
 
Ought Six's Avatar
 
Join Date: Oct 2008
Posts: 35,164
Blog Entries: 15
Thanks: 176
Thanked 390 Times in 326 Posts
Arrow

Bottom line; everyone else's debt is so toxic that our downgraded T-bills are still king. This is a sobering indicator of the true state of our global economy.
__________________
* I have the right to live, thus I have the right to defend my life from attackers who would take it from me.
* I have the right to my private property, thus I have the right to defend my property from thieves who would take it from me.
* I have the right to self-determination, thus I have the right to defend my liberty from tyrants who would take it from me.
* The only usable tools for these tasks are guns, and thus I have the right to shoot anyone who would take my guns from me.
Ought Six is offline   Reply With Quote
Old 08-13-2011, 07:45 PM   #6
Ross
Senior Level 6
 
Ross's Avatar
 
Join Date: Aug 2008
Location: Melbourne Australia
Posts: 8,946
Thanks: 578
Thanked 1,133 Times in 669 Posts


..
__________________
All paper is a short position on gold.

“Gold is money. Everything else is credit.”
.

Last edited by Ross; 08-16-2011 at 05:24 AM.
Ross is offline   Reply With Quote
Reply

Tags
$72, auctioned, billion, bonds, notes

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 05:25 AM.


Powered by vBulletin®
Copyright © Jelsoft Enterprises Ltd.