The Treasury is having another Auction next week. They will auction sell 3 year, 10 year and 30 year T-bills/bonds. It will be a record $75 Billion up for sale in one week.
The 3 year will be on the 11th (Tuesday) for $37 Billion
The 10 year will be on the 12th for $23 Billion
The 30 year will be on the 13th for $15 Billion
The govt. estimates they will issue $406 Billion of U.S. debt for the months of July and August .
The problem is I don't think the debt is actually going out to buyers as much as they have wanted. The Fed. admitted to buying $7 Billion of the last sales debt. I believe it was actually more though, as consolidated buyers might have also been investment houses funneling the money for the Fed.
I sure hope investment houses and retirement account executives are not putting people's hard earned money in U.S. debt, they are in charge of, via money market accounts.
So, lets keep our eyes on what happens next week, if there were not buyers for the U.S. debt clamoring over the 2/5/7 year bonds that were up last week. I can't imagine they will be buying the longer term ones very fast.
Also, will China show up this time? What countries will show up - will any?
Another thing - watch what happens on Thursday after the bond sales are over - will the dollar index take a dive - if the bond auction doesn't exactly go great?
Next week is a week to watch the bonds - and that isn't James Bond! ;) Unless it is sneaky stuff the Fed does to make the U.S. dollar still look strong by having money funneled through their "friends".
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