Dear Eric,
All these auctions have QE 2 influence. The ECB and Fed buys Portuguese. The Fed buys US.
In these cases are they good, great or bad?
Regards,
Jim
10-Year Auction Results
CIGA Eric
Good or bad, strength or weakness, are often defined by one’s perspective. The 10-year bond auction, from the perspective of the bid to cover ratio, was viewed by many as strong (bond).
A look under the hood shows that the participation rate trends remain in tact. That is, decreased participation from primary dealers and increased participation from indirect bidders. Primary dealers, once representing 70% to 80% of accepted bids, have fallen below 40% in late 2010 and 2011. You might be asking, who has filled the void left by the primary dealers? Indirect bidders, customers placing competitive bids through a direct submitter, including Foreign and International Monetary Authorities placing bids through the Federal Reserve Bank of New York, and direct bidders have filled it. In other words, the public sector is increasing becoming the buyer of last resort.
Strong 10-year auction?, well, that’s a matter of perspective.
10 Year Auction Results: 
Headline: Treasurys Pare Losses On Strong 10-Year Note Auction
A strong 10-year Treasury note auction on Wednesday helped the Treasurys market recoup some losses, but bond prices were weaker as U.S. stocks rallied.
Treasurys fell earlier as worries over the euro-zone debt crisis eased. The bond market also is bracing for an auction Thursday of $13 billion in 30-year Treasury bonds, which will wrap up this week’s $66 billion government note and bond supply.
The amount of bids submitted for the sale was 3.3 times the amount on offer, compared to the average of 3.03 for the previous eight auctions.
Source: online.wsj.com
Source: treasurydirect.gov
Dear LT,
How about this for a statement: "Soon to be "positively" worth-LESS vis a vis gold in the future!"
CIGA BT
China wants "positive" statement about dollar assets
BEIJING | Tue Jan 11, 2011 9:51pm EST
China would welcome a "positive" statement from the United States about the security of its dollar-denominated assets, a senior Chinese diplomat said on Wednesday, ahead of President Hu Jintao’s visit to the United States.
Chinese Vice Foreign Minister Cui Tiankai was speaking at a news conference in Beijing about Hu’s state visit from Jan. 18 to 21, including a summit with President Barack Obama.
Analysts estimate that about two-thirds of China’s reserves, which hit a record $2.85 trillion at the end of 2010, are parked in dollar assets, though the currency composition is a state secret.
