5year bid to cover 1.92

[muldoon]

If any noticed today, the treasury auction today had a 61% primary dealer participation without external interest.  It effectively failed to sell the 36billion in 5 year notes without the aid of the primary dealers buying the end.  (which they are obligated to do when no one else does as a condition of being a primary dealer and having access to fed financing...  which also explains why the primary dealers are the one and same as the bailout list).  Also It also needed a 10 basis point tail to close.  yeeeeouch. 

I watch the debt market daily (for years now) and have not seen this much brokenness since last October.  imminent trouble brewing.   

7 year notes tomorrow. 

[peternap]

Yep, I noticed!

The entire picture is disturbing to me....but different annalists see it differently, I'm still in hide and watch mode.