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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (73411)	6/28/2006 10:52:57 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yep, but it may not work forever. If it keeps increasing, it will (already is) kill the housing market and the economy that relies heavily on it. If it stops, it will kill the dollar.

To: William H Huebl who wrote (73411)	6/28/2006 11:10:48 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Note Auction The Treasury sold notes maturing in June 2011 at a yield of 5.203 percent, the highest yields since November 2000. Dealers accounted for 80 percent of the securities, the highest amount since June 2003, suggesting that investor demand was tepid. For every $1 sold, there were $2.05 worth of bids, following the May auction's $2.02. For the past 12 sales, the bid-to-cover ratio averaged $2.39. Indirect bidders, which include foreign central banks, bought 18.3 percent of the securities sold last month, down from 22.1 percent last month and the lowest participation rate since June 2003. ''If foreign investors suddenly decide Treasuries are no longer the place to be, that could impact the market and drive rates higher,'' said John Canavan, a fixed-income analyst at Stone & McCarthy Research, in Princeton, New Jersey. Fed Risk Since the Treasury Department started releasing bidder- participation figures in May 2003, the share of five-year note sales won by indirect bidders has ranged from 14 percent to 65.8 percent, and averaged 36.9 percent. The Treasury sold $22 billion of two-year notes yesterday. Investors placed bids for 2.28 times the amount of securities offered, down from 2.58 times at the previous auction on May 24. Indirect bidders were awarded 29.5 percent of the notes, compared with an average of 34.3 percent over the past year. ''There isn't a lot of demand at these levels,'' said Scott Gewirtz, head of Treasury note and bond trading at primary dealer Lehman Brothers Inc. in New York. ''They're going to try to push the market down. I don't think a lot of people are going to take risks ahead of the Fed.'' About $201.1 billion of Treasuries traded today through ICAP Plc, the world's largest broker of trades between banks, compared with the six-month daily average of $259.1 billion. Ten-year Treasuries rose yesterday, ending their worst slump since April 1974. The yield on the notes rose 27 basis points during a nine-day losing streak, pushing yields to the highest since May 2002. A basis point is 0.01 percentage point.