Treasury auction fail?

[c1ue]

Denninger saying that the 5 year Treasury auction on 7/29 was a virtual fail:

http://market-ticker.denninger.net/a...ely-FAILS.html

1.923 BTC X 61.59% Primary Dealer bid = 1.18 BTC (PD), greater than 1.0. Or to put it a different way, but for the primary dealers the bid-to-cover was less than one, meaning that some of the issue would have been left on the table.
Thats a fail; but for the primary dealers the issue would not have subscribed.
Primary dealers are required to bid. That's the deal in exchange for their being named as "primary dealers." For this reason short of thermonuclear war you will never see an actual (BTC < 1.0) "fail" on a US Treasury Auction - Treasury has rigged the process so as to insure that cannot be reported.

The 7 year auction on 7/30 was much better, but again the foreign and indirect bidder portion was very high.

Furthermore while this 7 year security is quite new, the actual interest rate in the first issue: 3/2/2009 is more than 0.5% lower than this latest one

CUSIP=912828KS8

• Interest Rate:
  
  • 2.625%
• Security Term:
  
  • 7-YEAR, 0-MONTH

Security Type	NOTE		First Interest Payment Date	08-31-2009
Series	G-2016		Standard Interest Payment	13.125000
	Yield %	Price
High	2.748	99.221940
Avg/Median	2.670	0.000000
Low	2.500	0.000000

Allocation at the High	67.47%
Offering Amt	22.0 billion		Announce Date	02-19-2009
Auction Date	02-26-2009		Issue Date	03-02-2009
Maturity Date	02-29-2016		Original Issue Date	n/a
Auction Format	SINGLE PRICE
Total Tendered	$47,492,300,600		Total Accepted	$23,178,494,600

CUSIP=912828LD0

• Interest Rate:
  
  • 3.25%
• Security Term:
  
  • 7-YEAR, 0-MONTH

Security Type	NOTE		First Interest Payment Date	01-31-2010
Series	M-2016		Standard Interest Payment	16.250000
	Yield %	Price
High	3.369	99.263422
Avg/Median	3.287	0.000000
Low	3.210	0.000000

Allocation at the High	91.73%
Offering Amt	28.0 billion		Announce Date	07-23-2009
Auction Date	07-30-2009		Issue Date	07-31-2009
Maturity Date	07-31-2016		Original Issue Date	n/a
Auction Format	SINGLE PRICE
Total Tendered	$74,287,499,400		Total Accepted	$28,701,406,900