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The Treasury sells $14B in (reopened) five-year TIPS at -1.496%. Bid-to-cover ratio of 2.7;...

The Treasury sells $14B in (reopened) five-year TIPS at -1.496%. Bid-to-cover ratio of 2.7; indirect bidders take 49%. Direct bidders take 10.7%.
Comments (6)
  • bull_market_somewhere
    , contributor
    Comments (115) | Send Message
     
    ha...
    20 Dec 2012, 01:06 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    That does not look to good....
    20 Dec 2012, 01:12 PM Reply Like
  • bbro
    , contributor
    Comments (9485) | Send Message
     
    -1.496%.....Minus....
    20 Dec 2012, 02:53 PM Reply Like
  • CerpherJoe
    , contributor
    Comments (32) | Send Message
     
    But, not to worry - from what I've been told there won't be any inflation because "broad money" is shrinking. Hmmmm.
    20 Dec 2012, 05:09 PM Reply Like
  • bull_market_somewhere
    , contributor
    Comments (115) | Send Message
     
    may turn out to be true, although i doubt it. hedge funds, reits, private equity, mezz lenders, etc. have been reducing the amount of credit extend on a much larger scale than anyone else. the fed may just merely be printing to keep money supply afloat and prevent a deflationary cycle.
    20 Dec 2012, 05:12 PM Reply Like
  • J. Sobes
    , contributor
    Comments (91) | Send Message
     
    "the fed may just merely be printing to keep money supply afloat and prevent a deflationary cycle" May? Look at the great depression. One of the major issues was deflation and Bernanke is educated in possibly every nuance regarding the great depression in existence. Wish I had my original source to back this claim up but that's right on the note. It's why policy never values a 0% interest rate - that would risk deflation with the lack of precision.

     

    On another note wth does this mean? Last time I check TIPS are adjusted downwards for delation as well. Maybe I'm really tired, but does this mean that they are expecting the payment to decrease? ahhhhh...
    21 Dec 2012, 12:15 AM Reply Like
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