The U.S. treasury has scheduled massive auctions next week. From past experience, the banksters tend to channel investors into buying these bonds by scaring them just prior to and during the auction week. Hence, we will likely see some strong moves over the next few days. Added pressure will likely be applied to precious metals as well.
Regards - VHF
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Next Week's Treasury Auctions Will Top $100 Billion For First Time Ever
Vince Veneziani
October 22, 2009
Call up the Guiness Book of World Records.
RBS:
The big event for the day will be the announcement of US auction sizes for next week. RBS economists estimate that we'll see $44bn in 2 years, $41bn in 5-years, $30bn in 7 years, and $7bn in a 5 year TIPS reopening which would all be a $1bn upsizes versus prior auctions and reopenings. This should signify the first set of auctions which raise more than $100bn of net cash for Treasury in a week if our estimates of issuance are correct.
