Thursday, May 7, 2009

30-Year Treasury Bond Auction Today

Today is the auction day for 30-year Treasury Bond ($14 billion), the last of the batch for the week. The top chart is the 6-month chart of 30-year Treasury yield, the bottom chart is today's intraday chart. Traders (I suppose) have been slamming the yield (conversely, bidding the price up) hard since the opening, as the stock market heads south and gold price reverses to the south.

The market is under pressure from "less bad" unemployment numbers. Go figure. It could be from ever-dribbling "stress test" result pressure. Who knows.. It's Mercury Retrograde. See the post below.)

Supply pressure and buoyant stock markets around the world have been pressuring the Treasury yields (yield goes up as the Treasury note/bond price goes down), and the yields on 10-year notes and 30-year bonds are back to the Fed's pre-quantitative easing days (i.e. before December 1, 2008).

The Federal Reserve is the buyer of last resort, and some people are fearing that it may become the only buyer.


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