"America may have breached its debt ceiling, but that is certainly not
preventing it from issuing debt, placing another $21 billion in 10
Year bonds in a reopening, which priced 1.5 bps through the WI tail of
1.915% or at 1.90%. This is merely the latest record low yield in the history of
the auction. The Bid To Cover came at 3.29: not a record, but certainly one of
the top 5 highest. Oddly enough, while the Directs disappeared from yesterday's
3 Year auction, today they surged, coming at double last month's 8.4% at 17.4%,
the highest since the August post-downgrade auction. Primary Dealers accounted
for 44.3% with Indirects coming in at a very weak 38.3%. Still, the take home is
that in the past two days, the US has raised over $50 billion in debt with no
capacity, and instead is plundering from government retirement accounts, just
like it did back in July 2011 at the first, but not last, debt ceiling theater.
SSDD.At least we know what it takes to get new record low yields: just keep
breaching the debt ceiling - guaranteed way to raise 30 Year debt at 0.00% in a
few months..."
at http://www.zerohedge.com/news/us-breaches-debt-ceiling-even-more-issues-10-year-debt-record-low-yield-directs-surge
at http://www.zerohedge.com/news/us-breaches-debt-ceiling-even-more-issues-10-year-debt-record-low-yield-directs-surge
