Upcoming T Auctions - Action-Packed Week!

[kmiklas]

Now that the debt ceiling has been lifted, we have an action-packed agenda for Treasury auctions next week.

• About $300B in liquidity about to be soaked up.
• Treasury needs to fill their coffers!
• I personally like the look those 21-day bills at 6.326%

This, of course, will ripple through the markets, driving up corporate bond rates, banks issuing higher lending rates to compensate for risk (why give a client with a 700 credit score a 5.5 rate when you can get that from the US Treasury?). Unclear to me is how this will affect the equities markets: I suspect that it will drain some money out as managers grab that yield.

imnsho, don't be surprised if next week is lackluster in the equities markets.

https://treasurydirect.gov/auctions/upcoming/

 

[mervyn]

No, today’s 4 week is below 5%, bought 10k, the lowest since January. I think it will drain some money from equities but these safety flights money doesn’t have the pricing power to bid up the rate. Also we will have a June rate skip, I expect the rates are below previous few weeks.

 

[kmiklas]

No, today’s 4 week is below 5%, bought 10k, the lowest since January. I think it will drain some money from equities but these safety flights money doesn’t have the pricing power to bid up the rate. Also we will have a June rate skip, I expect the rates are below previous few weeks.

Not so sure about that June rate skip. There is chatter of a ¼ point move up.

 

[longandshort]

Now that the debt ceiling has been lifted, we have an action-packed agenda for Treasury auctions next week.

• About $300B in liquidity about to be soaked up.
• Treasury needs to fill their coffers!
• I personally like the look those 21-day bills at 6.326%

This, of course, will ripple through the markets, driving up corporate bond rates, banks issuing higher lending rates to compensate for risk (why give a client with a 700 credit score a 5.5 rate when you can get that from the US Treasury?). Unclear to me is how this will affect the equities markets: I suspect that it will drain some money out as managers grab that yield.

imnsho, don't be surprised if next week is lackluster in the equities markets.

https://treasurydirect.gov/auctions/upcoming/

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Well done dude, you’re finally getting it.

 

[SunTrader]

2/10 yield curve steepening again:-

And yesterday's weekly FreedieMac 30 year mortgage rate reading was down 8 basis points (to 6.71%) from last's week number, that one was highest for the year so far @ 6.79%

 

[kmiklas]

Well done dude, you’re finally getting it.

Thanks man... it's been a long hard road.

 

[mervyn]

Not so sure about that June rate skip. There is chatter of a ¼ point move up.

Bonds have many kinds. If you just want to be T specialist, watch TGA is a must.

Last week’s issuances were a wash, money In money out, net positive 20m. They need to replenish few billions at a lower rate. TGA has only 71 billions left.

 

[mervyn]

Not so sure about that June rate skip. There is chatter of a ¼ point move up.

JP tells you everything few months in advance. There will be tow more rate hikes this year.

 

[Laissez Faire]

Well done dude, you’re finally getting it.

It sure sounds more sophisticated and impressive than charting analysis, but this was a fairly good week for equities with both S&P/NDX closing in on 3 % for the week.

 

[Laissez Faire]

I didn't mean to knock on your prediction, @kmiklas, as I did like your original post and found your thesis interesting.

I don't know much about the bond market, nor do I follow it closely. How did those bond auctions last week impact the bond market? Did it go as you expected per your thesis?