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