10 Year Yield Plunges To 2.57% As Bond Market Goes Full Retard

Tyler Durden's picture

The surge in the 10 Year has just gone full retard. In the meantime, behind the scenes of Wall Street's rates desks there are some serious Tijuana donkey shows going on.

And here, courtesy of credit trader, is what an exponential move higher looks like. In this case, this is the 10s30s, which BofA recommended flattening last week. Coin flipping indeed.


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Young's picture

Is it the bond market or the equity market that's gone full retard? "And everyone knows you never go full retard"

Tyler Durden's picture

The 10 Year doesn't read scripts. Scripts read the 10 Year

Max Gibson's picture

any follow-up thoughts on risk-bond pair since the morning post?

Tyler Durden's picture

ES has to drop to 1,068 for convergence although pair appears dislocated beyond repair right now due to major liquidations at both MS (2s10s steepener) and BofA (10s30s flattener) desks.

ZeroPower's picture

I read BACs note a while back mentioning a great hedge for the flattener plays with some long dated swaptions or basically underweighting the long end of the curve.

But also, why would the market dislocation in USTs matter on a broad basis - one desk's fuckup is anothers black on their P&L. At least, any decent sized fund (PIMCO advocated this a few months back) would have hedged with puts on longer dated treasuries.

mephisto's picture

Great market colour, thankyou. You'd make a hell of a broker. (sorry, sorry...)

DoctoRx's picture

Even when all the President's men are desperate to jump-start housing?

redarrow's picture

The effort put in to hold equities up is at 100000 psi. Sooner rather than later we will have the market equivalent of the Macondo well on Wall St. What next 10 year at 2%?...f'in it is already insane right now. 

Caviar Emptor's picture

Hehe. I'll say it again: 2.5% will seem rich when yields are 0.25%

chrisd's picture

I take my investment advice from Yahoo Finance: "Wall Street's down for 2010, but Some Still See Hope".

Also, Reuters: "Banks ease lending standard for first time in 4 years" (clearly they didn't get the memo about 2001-2008.

As told to me by respectable news outlets. It is time to go long on borrowed money.

redarrow's picture

Bermonkey is straining at the controls to pull the C130 up.

mikla's picture



Hephasteus's picture

Mikla and assetman have been funny lately. It must come from using Geihtner based avatars.

TwoShortPlanks's picture

Printing Presses in the Fed might as well be Oxygen Generators in cargo holds or jammed trim actuators in stabs.

"Global Sanity Control this is Austerity Air, I've got a visual on Capitalist Air...yeah, he's in a big huge deflationary dive and doesn't seem to be pulling-out...his T's seem to be ineffective, offering no lift whatsoever...wait a second...their pushing money out of the doors, tonnes of money...of shit, he's down...GSC, there's bits and pieces of Capitalist spread all over, , over what looks all the world to be an oil slick in the Gulf."

tom a taxpayer's picture

Pilot on loudspeaker: "Thank you for flying Hope and Change Airline. We will be landing in 30 seconds. Don't forget to remove your belongings from the overhead rack. Please watch your step when exiting."

redarrow's picture

Makes me sick just staring into that abyss. 

tmosley's picture

Only in a few instances have I seen Tyler go "Chicken Little", and this isn't one of them (the freon leak at the nuclear plant is what I am referring to here).  He's about as far from "full retard" as you can get.

Johnny Bravo's picture

And yet, tmosley and the bond markets happen to have much in common.

FWIW I'm kidding.  I've actually come to somewhat like you over time.

ColonelCooper's picture

"I've actually come to somewhat like you over time."

I'm guessing he somewhat couldn't give a flying fuck.

Johnny Bravo's picture

And you're only somewhat a prostitute for truckers, as your posts yesterday would indicate.

themosmitsos's picture

EVERYONE knows that if you pull off full retard though, that's an academy award ;)

Johnny Bravo's picture

Gold bitchez!

(How'd I do?  Did I get the Oscar?)  LOL.

Nihilarian's picture

"And everyone knows you never go full retard"



Sean Penn missed that memo.

Treeplanter's picture

Yet Sean did so well playing himself in Ridgemont High.  His Glory Days.

ghost's picture

best headline ever....

Assetman's picture

Oh... and the Simple Jack reference is even better!

I'm holding out... I don't just expect Full Retard... I'm waiting for Hyperactive Retard.

perchprism's picture


Hey, guys, knock it off, will ya---my sister's a retard.

Johnny Bravo's picture

What a coincidence!  So is her brother!  It must run in the family... 

Fred C Dobbs's picture

 I work with retards. . . I love those goofy bastards.

Miles Kendig's picture

Who is rolling on snorting too much of their Adderall to combat the Xanax effect.

chunkylover42's picture

holy short covering the bull steepener, batman.  capitulate!

fantastic pic, BTW, that's hysterical.

WineSorbet's picture

Tyler, you really know how to make my day.

Young's picture

Haha, seriously - I did not see that picture when I posted - Aaawesomeness!

assumptionblindness's picture

You know things are fuc'd when Tony Robbins feels compelled to make a 'Economic Warning' video.  Enjoy!


Young's picture

He's received a lot of shit, but right here he talks more sense than most other media figures...

assumptionblindness's picture

He surprised me with his knowledge...he must read ZH!

Young's picture

Right on mate!

"If you think out of optimism and delusion that everything is gonna go well..."

He's done some reading/got some tutoring on the subject, and that's a fact.

assumptionblindness's picture

Maybe he got some 'Tudoring' (from PTJ) on the subject.  I'd like to know his source(s)...

Young's picture

I actually thought about that aswell, but it doesn't fit with my avatars track record after that. He made a killing in bonds aswell as in the Nikkei - but maybe. Who else could it be? I know Jimbo Rogers was short, but he's not the type of guy to get in touch with Robbins...

Pladizow's picture

Always thought Tony Robbins was a tool.

He proved me wrong.

Tony impressively knows whats up!

Treeplanter's picture

Bet Tony has a nice stash of PM.  And a list of ETF shorts he likes, etc.   Guys, is it too early to go TBT?