Debt Auction – America Selling Itself into Slavery
Here we go! We’ll be at the first $1 trillion of $2 trillion after tomorrow debt auction.
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.
It’s the “Who Want’s to Own America Deal” round number three tomorrow. So far China seems heavy in the bidding with Russia dropping out shortly before half-time while lagging behind in 6th place. However, don’t discount the rich Oil Shieks across the Middle East participating as well they may be in a distant third but they’ve been stockpiling the oil money for years now. We’ve still got a way to go before we learn who our children and grandchildren will be slaves too. Thanks to the wonder’s of media we can learn who the politicians in Washington Democrat and Republican alike have sold us into slavery too in real time!!!
