Bad Bond Auction Accused Of Killing The Market

We’re still clinging to our theory that it was Manny Ramirez that killed the stock market. When people realised that our most charished national institution deserved as much trust as a AAA-rating on your CDO, they sold stocks and lsot confidence.

Another theory floating around is that a weak bond auction killed the market. All of the sudden nobody wants our debt! Indeed the interest rate on that 30-year bond is creeping up, confirming the Quantitative Easing FAIL meme, as Karl Denninger helpfully charts. On the other hand, we’ve had a few weak-ish bond auctions, and they all turn out to be blips. Could it be — gasp — that the rally is taking a breather? That after an insane two months, people are selling?

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