Tuesday, October 27, 2009

CNBC Report on Today's Treasury Auction

Follow this link to a report by the CNBC reporter Rick Santelli on today's 2-year note auction.

Viewers can see he is quite exercised (and perhaps displays disbelief and speechlessness) over the strength of demand for Treasury Securities at today's auction.

Readers of this blog should not have been as surprised at this outcome as Mike's post below identified the recent rise in reserve balances that is probably behind this strong demand.


MortgageAngel said...

That's great - All of them are dumbfounded! hahahaha

"26 on direct? Seriously? I'm gonna put asterisk on that..."

AND, he thinks that because the banks are buying the securities they will have less money to lend!

Poor, poor theres-only-so-much-to-go-around minded out-of-paradigmers.

Mike is the man! He called it exactly like this. Late last year he told us watch for increased demand for treasuries. He also said it would be the financial institutions at the forefront of these rallies and he told us why.

How lucky am I to see this unfold and make sense of it too!

Thanks, Mike!

Matt Franko said...


"26 on direct? Seriously? I'm gonna put asterisk on that..."...Translation: "Do you believe those numbers?!"...LOL!

Was he disappointed? Im really starting to believe that these people think that one of these days no one is going to show up at these auctions and have shorted bonds accordingly...

I hope the Fed keeps the pressure on this time and gets the 10-year back to 3% and mortgages to new lows...we'll see what they say then.

googleheim said...

And what would have happened if we had Mike back in the early 90's when the Superconducting Supercollider was terminated because it was thought that it was a pork drain on tax payers ?

Did Bush I axe that ?

If we would have made that investment, it would have put the USA in the FOREFRONT of science

Instead the largest particle accelerator powered by superconductive magnets is in Switzerland

This is an example of how debt terrorists ruin this country with their country bompkin attitude

This is an example why the Lauffer paradigm is to take your money and run off outside the USA as well as Peter Schiff.

Sure, Mike may point out that China is a place to make money, but he underscores the fact that the debt terrorists and others are the ones handing over the mantle and the cup.