Looks like the huge wave of treasury borrowing is behind and Bernanke is not pumping anymore. He’s back to defend dollar, oil and mortgage rates.

First, today TOMO auction is firmly 3% rate. No excuses. You borrow at 3% or you’re out.

Second, the dealers submitted $52 bln bids, but only $3.2 bln got accepted, i.e. 6% of submitted. Yesterday we had 52-7, same thing. But look at all the previous 2 weeks – without running any spreadsheet I see at least 20% of bids are typically accepted, and sometimes much more than this. At February 28 as much as 40% of bids were accepted.

Good cowboy is firing his bullets only when the bad guy is right in front of him. Now is the time to reload the gun