Dollar, Treasuries are becoming Trash

The beat goes on. Next week sets new record in Treasury debt. There is no end in sight for these incredible funding needs. How can anyone think this can end well? Our foreign debtors have been warning us and changing their investment positions for many months. Why would anyone hold dollars when we are creating them at record pace?

Record Treasury Supply On Deck: $116 Billion In Bond Issues, $182 Billion Total; Will Debt Ceiling Be Breached Next Week?

Submitted by Tyler Durden on 10/22/2009 11:34 -0500

• 2 Year Treasury
• 5 Year Treasury
• 7 Year Treasury
• Debt
• Debt Ceiling
• Treasury
• Treasury Supply

The Treasury has released the line up of Treasury issuance for next week and it is a stunner: in the week of October 26th alone, the US will issue $116 billion in new Treasury Notes (2,5 and 7 Years), another $30 billion in Bills and $7 billion in TIPS. As pointed out earlier, there is about $150 billion in availability before the Federal debt ceiling is breached ($12.1 trillion). This likely means that Geithner will have to resort to some last minute tricks to make this full upcoming issuance legally permitted.

From Treasury Direct:

• $29 Billion in 91 Day Bills, October 26
• $30 Billion in 182 Day Bills, October 26
• $7 Billion in 4.5 Year TIPS, October 26
• $44 Billion in 2 Year Notes, October 27
• $41 Billion in 5 Year Notes, October 28
• $31 Billion in 7 Year Notes, October 29

Total Bonds: $116 Billion; Grand total: $182 Billion, ($150 billion Bond Ceiling Window).

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