Treasury to Auction $104 Billion In Debt Next Week, a Record

The Treasury announced Thursday a record $104 billion worth of bond auctions for next week, part of its herculean efforts to finance a rescue of the world's largest economy.

The sales will exceed the previous record of $101 billion set in auctions that took place in the last week of April and consist of two-year, five-year and seven-year securities. That record was matched by another $101 billion week in May.

Though next week's total was broadly in line with expectations, worries about supply have weighed on the U.S. government bond market, which will see a mammoth $2 trillion worth of new debt issued this year.

"Maybe the Treasury market reacted a little negatively and it will continue to be like this," said Suvrat Prakash, U.S. interest rate strategist with BNP Paribas in New York. "Supply announcements and auctions on the horizon will make the market a bit nervous about upcoming debt."

Bond prices were lower already in anticipation of the Treasury's announcement and continued to sell off in reaction.

www.cnbc.com...

They plan to sell something no-one is buying...mmmkay that makes sense?

The government is likely to raise about $85 billion in net new cash given that there are about $19 billion worth of coupon securities maturing during the week.

They are crossing their fingers that someone will be dumb enough to buy the worthless paper... yeah good luck with that

The Treasury Department's report for May, released last week, pointed to a growing gap between government spending and income at a time when the economy is struggling to emerge from recession and tax revenues are likely to decline.

The U.S. government posted a $189.65 billion budget deficit in May, a record for the month and the eighth straight monthly deficit, the Treasury Department said on June 10.

The collapse is not far off.

Take that to the bank.



[edit on 18-6-2009 by warrenb]

That's supposed to be even more... more like 165 billions...

Here

The only way to get out of this for this time is to take bailout money that they gave to the banks to buy those bonds. Of course it's like the FED printing... but to the medias and the general people, it will give them confidence and say that people are investing in the US bonds... even if that's BS.

Seriously, the US is screwed within 6 months.

The analysts at LEAP2020, which have been right for years, predict that the US will default before November 1.

[edit on 18-6-2009 by Vitchilo]

There is no way out.

No foreign nation wants dollars anymore, they know the FED prints $ out of thin air and don't like it.

Look for unprecedented announcements and changes to the US very soon.

reply to post by warrenb


US taxpayers will buy it whether they like it or not.

That's how it will be monetized and eventually the bond markets will correct themselves.

I don't think the US can do this forever but they have been putting out fires since last October.

I want to buy it for a symbolic price of 100 Euro.

and just burn it, that would clear a little little bit of the debts.

reply to post by venividivici


It isn't going to work no matter what they do. They can monetize the debt all they want but they will default, they can't manipulate the numbers to say anything they want, but it isn't going to matter when the nations cash in the bonds.

It's a giant ponzi scheme and when you don't have investors you get caught and we are about to get caught.

They haven't even really been putting out the fires they have just been putting paper over the embers, all it takes is a calm steady wind and then a major gust to cause it to burst into an uncontrollable fire. That gust is coming very shortly.

I'm laughing so hard I think I'm going to have cramps, ha.

Insanity! Think about this for a moment. Yup, this is just another Ponzi scheme ~ by definition too. I mean, just exactly what does one use to buy these bonds (funny paper) with? (think think think ...) Yup, more funny paper! Ha ha ha ha, what a load of crap, ha, it's just a big paper doubling and shuffle scheme. "Hey, wanna exchange some existing paper in circulation for some new paper that we just printed up?" What a freaking Ponzi scheme, toss these mindless lying cheating monkeys into a hole and lets take back the planet from them, the PTB. All THIS amounts to is just more fiat paper put into circulation. This is yet another example of what we should NOT be doing.

Man, are our children, our descendants, going to scalp us alive for this mess we are creating for them. Hey, I have idea, ha. Lets go on an around the world vacation and shopping spree and max out our lines of credit before we have to declare bankruptcy next month, ha.

Now, just who do they expect will be buying these bonds? My money says they won't be able to sell many of those things. If anyone buys them, it will be those trading in their existing matured bonds for replacement ones. This is a desperate last ditch attempt to scam the foolish ones.