Direct and largely anonymous bids continue to take down an increasing percentage of the 5-, 10-, and 30-year auctions since 2009. Over the same period, the primary dealers, or Fed’s handlers, have steadily cut their participation rates. Participation rates within the debt game have changed enough to raise some eyebrows while the media slumbers away. Perhaps this is why Jim Rogers has often stated that “he wouldn’t lend money to the United States in US dollars for 30 years at three or four or five, or you name the interest rate.” The subtle change in participation rates suggests others are beginning to agree.
As always, follow the money.
5-Year Average Percentage of Total Accepted Bids Primary Dealers, Direct and Indirect Bidders since 2009
10-Year Average Percentage of Total Accepted Bids Primary Dealers, Direct and Indirect Bidders since 2009
30-Year Average Percentage of Total Accepted Bids Primary Dealers, Direct and Indirect Bidders since 2009
