"Abysmal" Treasury Auction- James Lavish
1170 sats \ 39 comments \ @grayruby 7 Aug econ
Another ugly 10YR US Treasury auction.
  • Tail over 3 bps
  • Foreign bidders only 66%
  • Bid to Cover was a measly 2.32
  • and Dealers were stuck with 18% of the auction
So much for flight to safety and imminent rate cuts. This auction was nothing short of abysmal.
Source https://x.com/jameslavish/status/1821238707300745634
write
preview
related posts
103 sats \ 14 replies \ @TomK 7 Aug
It's getting harder to absorb this public debt crap.
reply
54 sats \ 6 replies \ @grayruby OP 7 Aug
What a bind the fed and treasury are going to be in. Fed will need to cut but no one wants treasuries unless the juice is worth the squeeze.
reply
165 sats \ 1 reply \ @Undisciplined 7 Aug
And, inflation is still over it's target.
reply
51 sats \ 0 replies \ @grayruby OP 7 Aug
https://m.stacker.news/44222
reply
40 sats \ 3 replies \ @Bell_curve 7 Aug
The Fed can be the Treasury buyer of last resort
reply
21 sats \ 2 replies \ @grayruby OP 7 Aug
Just like the BoJ
reply
41 sats \ 1 reply \ @zx 7 Aug
Isn't that nearly all central banks?
reply
21 sats \ 0 replies \ @grayruby OP 7 Aug
To some extent but the BoJ are the worst and longest offenders.
reply
67 sats \ 6 replies \ @Satosora 7 Aug
The US needs to start paying off some of its debt.
reply
40 sats \ 5 replies \ @TomK 8 Aug
Never gonna happen. Fiat has a growing need for debt inscripted to roll over the debt load +'yield
reply
57 sats \ 4 replies \ @Satosora 8 Aug
RIght, I get that. But if they just paid of some of it...they could strenghten the dollar again.
reply
40 sats \ 3 replies \ @TomK 8 Aug
no, that doesn't work in the fiat money system because we use credit as money. so when a large debtor like the united states repays and redeems parts of its loan, the money supply drops dramatically. then there is illiquidity and massive interest rate spikes the existing debt becomes unpayable and a death spiral is set in motion. so credit, the money supply, has to keep increasing
reply
67 sats \ 2 replies \ @Satosora 8 Aug
That is true. But it is time for us to suffer a bit so that we can improve our situation.
reply
40 sats \ 1 reply \ @TomK 8 Aug
yes, but that would collapse the banking system, which is the circuit of the distribution system that makes the big robbery via the credit mechanism around inflation possible in the first place. That will only happen when the entire system collapses and can no longer be sustained
reply
67 sats \ 0 replies \ @Satosora 8 Aug
Its only a matter of time.
reply on another page
32 sats \ 1 reply \ @TheMorningStar 7 Aug
Why do they call it a good thing for US?
reply
21 sats \ 0 replies \ @grayruby OP 7 Aug
No one said it was a good thing.
reply
121 sats \ 1 reply \ @Coinsreporter 8 Aug
Thanks! So much to learn about Treasury Auction! Great post.
Just one confusion. At what point it really becomes good for Bitcoin?
reply
20 sats \ 0 replies \ @TomK 8 Aug
When there're only the CBs left to buy this junk and markets realize there's a risk holding this stuff
reply
77 sats \ 3 replies \ @0xbitcoiner 7 Aug
Brrrr! 10y debt rated AAA?
reply
20 sats \ 0 replies \ @TomK 8 Aug
Rating agencies are highly political controlled players in the fiat fraud scheme.
reply
10 sats \ 1 reply \ @Bell_curve 7 Aug
Rating is inverse of yield
reply
10 sats \ 0 replies \ @0xbitcoiner 7 Aug
🤠
https://m.stacker.news/44236
reply
20 sats \ 0 replies \ @jerrybature 8 Aug
Very Informative. Thanks.
reply
20 sats \ 0 replies \ @TomK 8 Aug
yesterday's bad auction of US government bonds reminds me fatally of an event that happened here in Spain about half a year ago. we have the same problems here in Europe, if not much bigger ones, with government debt that nobody really wants to take on their balance sheet, which is why the ECB has basically been the only main buyer of this garbage for over 10 years. half a year ago, the Spanish government called on people to buy government bonds via newspaper advertisements and the older generation queued up in front of the banks to buy this garbage. probably as a toxic legacy for the grandchildren
reply
20 sats \ 0 replies \ @Satosora 7 Aug
No one wants to buy toilet paper.
reply
20 sats \ 12 replies \ @Bell_curve 7 Aug
Why buy 10 year notes when 2 year notes have higher yield?
reply
21 sats \ 11 replies \ @grayruby OP 7 Aug
Did you see the news that Buffett holds more t-bills than the Fed now?
reply
71 sats \ 0 replies \ @TomK 7 Aug
BR, like Tether, clearly is embedded in the growing group of dumping pools for the Treasury
reply
41 sats \ 7 replies \ @Satosora 7 Aug
I feel Buffett is a bit outdated. Is he still on about btc being a scam?
reply
41 sats \ 6 replies \ @grayruby OP 8 Aug
Definitely
reply
41 sats \ 5 replies \ @Satosora 8 Aug
Him and munger. Both still on their high horse.
reply
41 sats \ 4 replies \ @grayruby OP 8 Aug
Munger died around 9 months ago so he isn’t around to complain about bitcoin anymore but Buffett hasn’t changed his stance.
reply
41 sats \ 3 replies \ @Satosora 8 Aug
Munger died? I must have missed that news! Wow, he made it to 99!
reply
40 sats \ 2 replies \ @Bell_curve 8 Aug
JD Vance's wife, Usha, was a partner or associate at Munger Tolles law firm
view replies
20 sats \ 1 reply \ @Bell_curve 7 Aug
What? No
Thanks for sharing
reply
21 sats \ 0 replies \ @grayruby OP 7 Aug
https://www.cnbc.com/2024/08/07/warren-buffett-now-owns-more-t-bills-than-the-federal-reserve.html
reply