The below from Chuck Butler of Evergreen Bank today about weakness of Treasury Auctions. This could bode well for TBT, that shorts the long Treasuries......TBT is in Peter's portfolio.

"This news is so BIG, you're going to wonder why I waited so long to tell you about it!

Well... Remember last week, when I told you about the 10-year Treasury auction results? I told you that the yield had to be driven higher by 7 BPS to attract investors... Well, that's cotton candy compared to the news from the 30-year Treasury auction!

Let me put this as easy to understand as possible... "indirect buyers" are the foreign Central Banks, and they normally take down 40% of a Treasury Issue... Well, last week, they only took down 28% of the issue... Uh-Oh! But then, there was the "direct buyers" upping their participation in the auction to a record level of 24%!

Now, most of the market participants don't have a clue what these numbers are telling us... But, as Pfennig readers you will now know... The "direct buyers" are "unknown"... Yes, there is no way to tell who makes up the "direct buyers"... For all we know, the Fed took down the entire amount! Why, you may ask is this a problem? Well... We almost had a "failed auction" here in the U.S. If not for the "unknown buyers" it would have failed! "
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