The Bernanke Sandwich - sorry, but the buyers of US debt find it inedible

This doesn’t meet with my palate either. The Agora Financial folks brought this to my attention in their 5 Minute Forecast last Friday. Here you have it:

“This brings us to a phenomenon that emerged over the last 48 hours

.

We call it “the Bernanke sandwich” -- a reaffirmation of loose monetary policy, sandwiched by two lousy Treasury auctions.

Let’s walk through the timeline…

• Wednesday, 1 p.m.: Treasury auctions $42 billion in 5-year notes. Demand is weak

• Thursday, 10 a.m.: Ben Bernanke tells Congress, “The economy continues to require the support of accommodative monetary policies”

• Thursday, 1 p.m.: Treasury auctions $32 billion in 7-year notes. Demand is weak.

Foreign investors in particular failed to show up. Put it all together, and the yield on a 10-year note is up to 3.9% now -- the highest since last June.

Given the rough correlation between the 10-year note and mortgage rates, yesterday was probably your last chance to snag a 30-year fixed under 5%. Sorry ’bout that.

Plenty more where this came from. Treasury is expected to auction $1.6 trillion in new debt this year. That’s in addition to existing debt that’s coming due and needs to be rolled over.”

Excuse me – I’m going to pass on this sandwich and head to the golden arches. A gold coin, a silver coin, a gold coin, a silver coin with a gold coin on the bottom.