Update: Market Mover: Record Treasury Auctions Continue….

Update: 3:49pm EST – 10 mins to the close. DOW down 165 to 8371, S/P down 24 to 896, NAS down 55 to 1772..and absolutely Everyone is watching the US dollar….

Oil, big pullback on World Bank economic forecasts lower than expected (from the D’uh! files) Oil now down 2.62 to 66.93,

all the commodities took a big hit on that forecast today as people were shocked, SHOCKED to consider that China stockpiling commodities does not in itself, mean an end to the global downturn, since once again, it is the AMERICAN consumer that drives the global economy….

they wish and wish for decoupling and a new world leader but it aint happenin’…again….here’ an idea, how about incentivizing the creation of  some PRIVATE SECTOR JOBS here in the USA with oh I dunno, a tax cut? or even better, by stopping all the insane spending and crowding out of the privagte sector, stop meddling in everything under the sun!!! /sheesh

PS CNBC chryon says WH is announcing unemployment will exceed 10% this year, and in other earth shattering news the sun rises in the East…..

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Another opportunity for the Bond Vigilantes to rein in the spending by demanding higher rates……or they could keep letting Uncle Sam play the role of Wimpy….

CNBC:

The Treasury announced Thursday a record $104 billion worth of bond auctions for next week, part of its herculean efforts to finance a rescue of the world’s largest economy.

The sales will exceed the previous record of $101 billion set in auctions that took place in the last week of April and consist of two-year, five-year and seven-year securities. That record was matched by another $101 billion week in May.Though next week’s total was broadly in line with expectations, worries about supply have weighed on the U.S. government bond market, which will see a mammoth $2 trillion worth of new debt issued this year.

“Maybe the Treasury market reacted a little negatively and it will continue to be like this,” said Suvrat Prakash, U.S. interest rate strategist with BNP Paribas in New York. “Supply announcements and auctions on the horizon will make the market a bit nervous about upcoming debt.”

Bond prices were lower already in anticipation of the Treasury’s announcement and continued to sell off in reaction.