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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: steve susko who wrote (26308)	1/14/2010 11:27:03 AM
From: Real Man	Respond to of 71454

Not as sharply as it rose, and yes, this is a level of resistance for TNX. From the looks of the chart, it's already broke out and now re-testing. I just suggest watching the level and if it starts going North. It might not do anything for some time, maybe a month or two. -g- stockcharts.com

To: steve susko who wrote (26308)	1/14/2010 7:32:08 PM
From: Real Man	Respond to of 71454

Nobody has a clue when this new liquidity-induced derivative bonanza ends. CFTC imposing position limits on oil and gas again, which is not new (they did it periodically in the past, raising marging requirements to crash gold), but discussion of forex is new. In other words, if they talk commodity derivatives, it's not revolutionary, but other derivatives will be. cftc.gov

To: steve susko who wrote (26308)	1/15/2010 9:01:11 AM
From: DebtBomb	2 Recommendations Respond to of 71454

Listen to Faber 1/13, LOL. He looks at ben, geithner, and obama, and he will never sell his gold, LOL. marcfaberblog.blogspot.com

To: steve susko who wrote (26308)	1/15/2010 12:46:14 PM
From: Real Man	Read Replies (1) \| Respond to of 71454

Could be the Fed. I don't know, but their SOMA account also mysteriously grew by 60.8 billion this past week <g> Direct bids for US Treasury notes lead to speculation over buyer By Michael Mackenzie in New York January 14 2010 02:00 Auctions of US Treasury notes this week have attracted extremely strong buying from domestic institutional investors, fuelling speculation that "one big bidder" has decided to defy the conventional wisdom on Wall Street that US government debt is due for a fall. Yesterday, direct bids accounted for 17 per cent of the sales of $21bn in 10-year Treasury notes, far higher than the recent average of 7.4 per cent. It was the highest percentage of direct bids in a 10-year Treasury auction since May 2005. On Tuesday, direct bids accounted for a record 23.4 per cent of the bidding for $40bn in three-year notes, up from an average direct bid of 6 per cent. Market participants say the unusually high level of direct bidding suggests that a large investor is looking to accumulate Treasuries without alerting the primary dealers on Wall Street to its intentions. "It appears to us that someone is trying to hide their apparent interest in owning these auctions from the rest of the market," said David Ader, strategist at CRT Capital. Rick Klingman, managing director at BNP Paribas, said: "It is unusual to see such a spike in the direct bid and I would imagine it is one big bidder. There is no way we will find out who it is, not now, or ever." The surge in direct bidding is particularly notable because it comes after predictions that the record levels of Treasury debt issuance would exhaust investor demand, driving yields higher. Among the most high-profile warnings came from Pimco, manager of the largest bond fund, which raised concerns about the escalating supply of US Treasury debt. Attention will now focus on whether there is similar direct demand for today's $13bn 30-year bond sale. The 10-year notes were sold at a yield of 3.754 per cent yesterday, the highest rate awarded for a note sale since June, when they were issued at 3.99 per cent. At the start of the year the yield on 10-year notes briefly traded at 3.90 per cent, as many investors talked down the prospects for Treasuries. The note traded at about 3.70 per cent earlier this week and was at 3.70 per cent late yesterday. Under the three main classifications of buyers in Treasury debt sales, direct bidders are generally domestic non-primary dealer banks and large institutional investors. Normally their presence at Treasury auctions is small, as they usually buy debt through the primary dealer network, which currently numbers 18 banks and broker/dealers.