More QE as another day brings another auction and indirect bids drop to 29% which is the lowest level since April of 2009. I think the 30 year goes tomorrow which could be a real disaster for the US. I don't know if it is the quantitative easing that is driving the dollar down and gold and silver up - or is it the threat of the hearing on COMEX positions limits tomorrow? Maybe JP Morgan is getting nervous and embarrassed about being exposed as a crooked organization. Bart Chilton, commissioner, has promised to bring up the subject of limits on silver shorting and I suspect Chairman Gensler may let him. The following is a story on treasury auction:

NEW YORK (Dow Jones)--Treasury prices fell further Wednesday despite solid demand on a $21 billion 10-year note auction as investors prepare for Thursday's $13 billion 30-year bond sale.

Riskier assets such as stocks and commodities rebounded, dimming the allure of low-risk, low-return government debt.

"Part of it could be the [30-year sale] is staring everyone down tomorrow as another duration hedging event," said George Goncalves, head of fixed income rates strategy at Cantor Fitzgerald in New York.

The amount of bids for the 10-year note auction was three times more than the amount on offer, the highest ratio since July 2009.

Still, the indirect bid, which is a proxy for demand from foreign buyers including central banks, dropped to 29%, the lowest level since April 2009. This may raise concerns that the U.S. massive fiscal and economic stimulus, which may generate inflation, could cut foreign demand this year just as the Treasury needs to sell another record amount of government debt to fund the budget deficit and programs to support the economy.

Instead, it was direct bidders--large money managers and dealer-brokers that have terminals allowing them to bid on the auctions--that supported the auction. The direct bid was was 17%, the highest since May 2005, compared with 8.9% at the 10-year auction in December and 4.5% at the auction in November.

As of 1:38 p.m. EST (1820 GMT), the two-year Treasury note was 3/32 lower at 100 2/32 to yield 0.96%, the 10-year note was 16/32 lower at 96 21/32 to yield 3.78%, and the 30-year bond was 1 6/32 lower at 94 25/32 to yield 4.70%. Bond prices move inversely to their yields.

-By Min Zeng, Dow Jones Newswires; 212-416-2229; min.zeng@dowjones.com