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U.S. sells 3-year debt at lowest yield ever
Marketwatch ^ | 8.9.11 | Deborah Levine

Posted on 08/09/2011 10:44:36 AM PDT by Free Vulcan

The Treasury Department sold $32 billion in 3-year notes Tuesday at a yield of 0.5%, the lowest yield ever for the maturity. Bidders offered to buy 3.29 times the amount of debt sold...

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: auction; debt; securities; treasury
So far the downgrade isn't effecting the treasury auctions...so far.
1 posted on 08/09/2011 10:44:39 AM PDT by Free Vulcan
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To: Free Vulcan

I’d rather have stocks, getting 4.65%. There’s some risk, of course, but also potential upside.


2 posted on 08/09/2011 10:48:03 AM PDT by proxy_user
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To: Free Vulcan

I’d love to see a breakdown of WHO is buying them...if it’s the Fed, then they are just blowing up the bubble.


3 posted on 08/09/2011 10:51:13 AM PDT by demsux (Obama: THE job destroyer)
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To: Free Vulcan

So far the downgrade isn’t effecting the treasury auctions...so far.
++++++++++++
Which raises two questions:

1. Why did the market crash on Monday?

2. What will Treasury yields be when the Italian Panic of 2011 is history.


4 posted on 08/09/2011 10:52:14 AM PDT by InterceptPoint (w)
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To: demsux

The article give some general breakdown, no specific players though.


5 posted on 08/09/2011 10:53:38 AM PDT by Free Vulcan (Obama/Biden '12: No hope and chump change.)
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To: Free Vulcan

So I thought a downgrade raises yields? What gives?


6 posted on 08/09/2011 10:54:48 AM PDT by cicero2k
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To: proxy_user
Where are u getting 4.6% in stocks?

So much for the downgrade causing us to pay higher rates to borrow.

7 posted on 08/09/2011 10:55:01 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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To: demsux
I’d love to see a breakdown of WHO is buying them

Exactly. The 10 year closed LOWER yesterday than last Thursday. (Although lender rates went UP today!)

What's going on? I'd say the US government is urinating in it's own backyard.

8 posted on 08/09/2011 10:55:26 AM PDT by moovova (Our country, AAA. Our credit rating, AA+. Our president, FF-.)
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Comment #9 Removed by Moderator

To: cicero2k
So I thought a downgrade raises yields? What gives?

The downgrade just said publicly what everyone already knew.

10 posted on 08/09/2011 11:00:29 AM PDT by KarlInOhio (The Repubs and Dems are arguing whether to pour 9 or 10 buckets of gasoline on a burning house.)
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To: Free Vulcan

Monopoly money has become a world wide game. In order to keep interest rates close to zero, foreign central banks buy 50% of the bonds auctioned by the US Treasury.

Then I suspect the Federal Reserve does a quid pro quo and buys 50% of the bonds issued by foreign treasuries.

Also, the numbers do not add up. Kinda like Obama’s complaints about S&P. Indirect bidders bought 47.9% and direct bidders bought 11.1%, so who bought the other 41%???

And who would want to buy a 3 year treasury note that yields ½ percent? Why would anyone want to tie up $100,000 for 3 years and only get $500 interest? Could it be the only buyers of these government bonds are the central bankers who simply print some worthless dollars or euros or pounds?


11 posted on 08/09/2011 11:01:53 AM PDT by Presbyterian Reporter
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To: demsux
The regular citizen living in this great country sold their stock this week as they witnessed their savings tank in front of their eyes.
Today the rich are buying up the bargains.

I refuse to participate in this madness anymore and watch my savings disappear into a wisp of smoke.
Wall Street is Los Vegas and if anyone is putting their life savings into it ...oh well.

12 posted on 08/09/2011 11:01:59 AM PDT by lucky american (I'm tired.)
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To: Why So Serious

Intel offers a 4% dividend.


13 posted on 08/09/2011 11:02:04 AM PDT by Siena Dreaming
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To: Aevery_Freeman

Saved before the deletion!


14 posted on 08/09/2011 11:03:29 AM PDT by EyeGuy (2012: When the Levee Breaks)
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To: Free Vulcan

Evryone is so hot for the safety of Treasuries, I wonder is the FED selling some of it’s huge holdings.

Being older they have higher yields and could be sold at a profit I’d think. And the FED will probably need the cash to buy more Treasuries later when they’re not so wanted.

Disclaimer: I know nothing of this market!


15 posted on 08/09/2011 11:05:14 AM PDT by mrsmith
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To: demsux

It looks like foreign central bankers bought 47.9% and the other 41% is unaccounted for. Does the FED have a quid pro quo agreement with foreign central bankers to buy US bonds and the FED will buy foreign bonds?

Anything is possible when the fox is guarding the hen house.

NEW YORK (MarketWatch) — The Treasury Department sold $32 billion in 3-year notes Tuesday at a yield of 0.5%, the lowest yield ever for the maturity. Bidders offered to buy 3.29 times the amount of debt sold, close to the average of 3.25 times at the last four auctions of 3-year notes, all for the same amount. Indirect bidders, a group that includes foreign central banks, bought 47.9% of the auction, the highest proportion since May 2010 and compared to 34.1% on average. Direct bidders, a group that include domestic money managers, purchased another 11.1%, versus an average of 12.5%. After the auction, the broader bond market remained under pressure ahead of the Federal Reserve’s policy statement. Yields on 10-year notes , which move inversely to prices, rose 5 basis points to 2.37%.


16 posted on 08/09/2011 11:05:58 AM PDT by Presbyterian Reporter
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To: Siena Dreaming

Let’s see, a 4% dividend added to a 10% decline in price is equal to a (-6%) ROR ... there is one thing that is more important than return ON investments and that is return OF investments.


17 posted on 08/09/2011 11:07:16 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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To: moovova
What does John Kerry know about Economics?

Three women have been supporting him his whole life.

His mother, Rosemary Forbes, was a member of the Forbes shipping family and a descendent of John Winthrop, who helped found Boston in 1630. She was one of 11 children, which thinned the family fortune somewhat. Her father was an international businessman, and she spent her early years in France at the family’s estate.

Before he married Teresa Heinz, the heir to the food empire, Kerry had little more than his annual Senate salary of $133,600 and a trust fund valued at $50,000 to $100,000. When his mother died in 2002, he inherited trusts with $300,000 to $1.5 million in assets — a pittance compared to his wife’s estimated $500 million.

The Democratic presidential candidate grew up in a world of elite private schools and vacations on a French estate, something most Americans could only dream about. His parents, a U.S. diplomat and a homemaker, turned to a wealthy, childless great-aunt, Clara Winthrop, to help pay the bills.

His first wife As Kerry struggled to launch his political career, Thorne used her wealth to help support the family. He was a private lawyer and prosecutor in Middlesex County, Mass., before running for lieutenant governor in 1982, the year he and Thorne split. The financial terms of their 1988 divorce were not made public.

Second marriage In 1995, Kerry’s fortunes changed dramatically when he married Teresa Heinz, the widow of Sen. H. John Heinz III of Pennsylvania. His next disclosure report to the Senate included dozens of pages detailing Heinz’s financial portfolio and some of the wedding presents they received, including a mirror with their wedding announcement framed on top from “Mr. and Mrs. Arnold Schwarzenegger” and a Baccarat flower vase from actor Clint Eastwood.

Gigolo is what he is called. Not an Economist

18 posted on 08/09/2011 11:09:48 AM PDT by scooby321
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To: EyeGuy

DITTO


19 posted on 08/09/2011 11:10:12 AM PDT by faucetman (Just the facts ma'am, just the facts)
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To: Siena Dreaming

You are better off buying corporate bonds that yield more than treasuries.


20 posted on 08/09/2011 11:10:36 AM PDT by Presbyterian Reporter
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To: Why So Serious
Intel stock price is still higher than it was in April. It hasn't suffered like many others because business is strong.

Price may still go down with the overall market which is why I wouldn't pull the trigger quite yet, but they are sitting on over $30 B in cash.

This company will weather the storm.

21 posted on 08/09/2011 11:11:40 AM PDT by Siena Dreaming
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To: KarlInOhio
The downgrade just said publicly what everyone already knew.

The market has spoken and is shrugging off the downgrade and lack of debt deal.

22 posted on 08/09/2011 11:17:11 AM PDT by cicero2k
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To: InterceptPoint

I’m wondering if investors look upon the S&P downgrade of the U.S. government as a symbolic breath of fresh air. If U.S. government securities are rated at AA+, then what does this say about those allegedly AAA-rated countries like Germany and France whose currency is dragged down by anchors like Spain, Italy and Greece?


23 posted on 08/09/2011 11:22:58 AM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Why So Serious

Some P/E as of this moring:

Proctor & Gamble: 15
Kraft Foods: 19
Weyerhouser: 5.9
Microsoft: 9.2
Raytheon: 7.4
Ford: 6.1
Wal*Mart: 10.9

The implied ROI:

Proctor & Gamble 6.7%
Kraft Foods 5.3%
Weyerhouser 16.9%
Microsoft 10.9%
Raytheon 13.5%
Ford 16.4%
Wal*Mart 9.2%

It I had invested a dollar in gold on December 31, 1983, today it would be worth $4.25. The same dollar in my 401k would worth $8.17 without the company match. In a savings account at 5% it would be worth $3.84. If I had invested it in residential real estate locally, it would be worth about $2.98. I am ignoring taxes in all cases. However, only in a 401k, can I avoid taxes.


24 posted on 08/09/2011 12:34:46 PM PDT by Lonesome in Massachussets (Somewhere in Kenya a village is missing its idiot)
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To: faucetman

Still up, I see.

I’ve had posts deleted that were MUCH less obviously profane.

Puzzling.


25 posted on 08/09/2011 12:39:18 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: Why So Serious

Where are u getting 4.6% in stocks?

Try CENEX. A preferred stock with no common stock.


26 posted on 08/09/2011 12:51:39 PM PDT by chainsaw (I'd hate to be a democrat running against Sarah Palin.)
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To: EyeGuy
Yeah, I knew I was being bad - it's just so much fun to say!

Sorry Mr. Moderator!

27 posted on 08/09/2011 3:17:10 PM PDT by Aevery_Freeman (Thanks to the Change there is no Hope!)
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To: InterceptPoint

There will be one thing or another to cause a flight to “quality” as long a Barry is president. I have been noticing the same thing as you for over a year.


28 posted on 08/09/2011 3:22:39 PM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
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To: Aevery_Freeman

Oh, I wasn’t advocating your post’s deletion, I was just puzzled.

I enjoyed it and saved it!


29 posted on 08/09/2011 5:05:35 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: Lonesome in Massachussets

What if you invested in December 1973, 1993, 2003 ... I guess it depends on when you get in. i was looking at a ten year investment due to the fact that most often we use a 10 year look at performance


30 posted on 08/10/2011 7:36:33 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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To: Lonesome in Massachussets

Just to pick a different date .. Decemebr 31, 1971.
If you put $1 into Gold it is worth $50, and if you put $1 into stocks it is worth $12 [without your company match, I guess!]


31 posted on 08/10/2011 7:59:50 AM PDT by Why So Serious (There is no cure for stupidity!!!)
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