Another Hole In The Bond Bubble As 30 Year Gets Reacquainted With Gravity

Tyler Durden's picture

Following today's ugly 5 Year auction, and hot on the heels of the 180 degree EUR reversal from this morning, coupled with the renewed surge in gold and silver, the entire bond complex is again in free fall (and no, Build America Bonds has not and likely will not be renewed in its current form), lead by the 30 Year. And if this was based on an expectation of real rates rising, as the pundits would claim, which would be an expectation of economic improvement, then gold would not be flirting with its all time highs. Which means that today's market action in every asset class is representing the economy accurately, especially following the 4th consecutive home price drop be Case Shiller... every asset class except for stocks of course. Then again, with volume once again abysmal (MVOLNYE just under 1,400), HFT/Fed levitation programs are the only thing that is trading 100x P/E hot grenades as per always.

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Ragnarok's picture

Quick nurse, I need a POMO stat!

Cognitive Dissonance's picture


Of course. Would they have it any other way?

Now where is that emergency tube of K-Y I keep handy?

Hugh_Jorgan's picture

Definitely bring our own KY to any function involving the Fed. Lord knows that Benny and Co. will only use their KY if they can throw a handful of sand in it first.

revenue_anticipation_believer's picture

A very large move ( 0.25% in a single session), on the 30 year long bond, that should have created a LOT of financial commentary, speculation as to the 'meaning' or 'portents'....first i saw was  HERE

However, HERE, shows it took ONE MONTH to go from 4.25 => 4.50% why the major discrepancy ?

metastar's picture

He's Dead Jim!


My Favorite: "It was worse than dead. His brain is gone!"

tictawk's picture

With Gold and Silver pushing the highs and 30 yr bonds pushing the lows, Bernanke's balls are in a proverbial vise and he'll soon be handed a razor to set him free.

goldmiddelfinger's picture

They'll make a movie of it of course and it'll be set in a cave in Utah.

Fidel Sarcastro's picture

Not to worry...these are not the droids you are looking for...The Ben Bernank will fix everything.

LeBalance's picture

Have you met his bud Dover?

He will complete the process in the usual manner.

wiskeyrunner's picture

All the reporting all the chatter about this and that truly means nothing, all that matters is the trend. It's all rigged for now to the upside people. You might as well turn off your TV, stop searching for financial news as it's all meaningless. 

Max Hunter's picture

That's right.. and Uncle Ben made sure of that trend with QEII in Nov..  ohhh wait... nevermind..

Revolution_starts_now's picture

"just buy the fucking dip"


I swear to god I am going to spray paint that on the bernank's tombstone. Mind if I add "bitchez" just to let everyone know where it came from?

Turd Ferguson's picture

The PMs often peak on Tuesday. I ask all those trading metals to read this:

SheepDog-One's picture

'Trading' metals? No I dont trade PM's, buying them as at least some measure of safety against this entire disaster around us.

Turd Ferguson's picture

I hear ya, SheepDog. There are some, however, who are making a few fiat by trading options and mining shares. Today or tomorrow would be a good time to lighten a little.

Gaston's picture

I just bought a 100 ounces of silver today, from APMEX, me thinks Silver and PM's will end the year at higher highs.

chopper read's picture

i believe your behavior will continue to be replicated and your predictions realized. 

ZeroPower's picture

Oh ya this reminds me, your blog, why do you write stuff by hand on it? More curious than critical..

Turd Ferguson's picture

Zero, some folks seem to really like it. I've been told it gives the site some "humanity". I don't know about that but I've kept doing it because its easy. 

StychoKiller's picture

So, do you also take a picture of the chart(s) on a wooden table, digitize them, and fax them to your website?  (long-standing joke on

Mr Lennon Hendrix's picture

Charlotte Isertbyt is an Jones, so I am putting gold on hold.  What a day though eh Turd!!  What do you think about my call last night for miners, I am sure you read it before the move ;)

I will read that post later on the Turd's Watchtower Blogosphere Spot.

Lionhead's picture

Turd, are you picking up any buzz from the LME?  We live in interesting times....

chopper read's picture

So what do we do next? Personally, The Turd will try to lighten some positions here, either later today or at the open tomorrow


with all due respect, Turd, i like your blog a lot, but this strategy will work until it doesn't; then, where to get back in?

we are nearing a new year, which brings with it new portfolio allocations from all types of investors.  it is difficult for me to believe these portfolio changes will include less precious metals. 

in other words, back up and realize that you should only be adding to long positions on technical sell-offs at certain times.  the 'fundamentals' are still intact, and the 'technicals' will continue to be used as a means for weak hands to transfer positions to strong hands.

...don't grow a brain, my friend.

and keep up the great work!

Cleanclog's picture

Just think what we'll be spending on debt servicing as rates climb for the Treasuries (and of course munis, corporate bonds, etc).  And as fatigue climbs the supply increases.  A toxic mix.  What a cocktail TPTB have concocted.  

SheepDog-One's picture

NO problem at all for bullshit equities, as they correlate to absolutely nothing anymore! Well, enjoy because that wont last much longer.

threefingerscam's picture

...especially following the 4th consecutive home price drop be Case Shiller...

And as Reggie Middleton points out, Case-Shill doesn't show the real (more negative) picture, because the model leaves out a ton of inconvenient data.

HarryWanger's picture

Did Reggie mention the Richmond Fed number that blew away estimates and is showing some impressive strength in manufacturing?

Did Reggie mention strong retail sales figures reported today?

Did Reggie mention that he's been dead wrong on AAPL as it continues to hit new all time highs?

Internet Tough Guy's picture

You sound a little desperate. Rates got you spooked, bullie?

Robot Traders Mom's picture

Hey tough guy, leave my nephew alone. He is up 3% YTD in his practice Forex account this year which is about 20% better than my mentally-challenged son.

High Plains Drifter's picture

Hey but Wanger is beating the margin  spread on his over priced Chinese junk he sells at those stores.

Cognitive Dissonance's picture

Oh yeah, Harry is beating his margin all right. No one spends that amount of time informing everyone how stupid they are without a marginal Woodie in hand.

High Plains Drifter's picture

Marginal woodie?  Is that SDS?  small dick syndrome?



Pool Shark's picture

So Harry...

Manufacturers are producing more goods; while inventories build because consumers are slowing their purchases; all the while margins are getting squeezed.

And this is supposed to be good news???

thepigman's picture

Wanker, don't you really belong on the

Yahoo message boards circa 2000?

High Plains Drifter's picture

He was there along with Douchinger before Douch got pissed off and took his marbles and went home because he was constantly  having to argue with other people who had varying opinions.

SRV - ES339's picture

Harry will only see the truth when "The Bernank" stops the flow of debt based liquidity... and it shouldn't take the new Tea Party Congress long to pull that off.

dwdollar's picture

I wouldn't count on it too much.  The Tea Party is a small subset of the Republican Party and the Republican Party isn't much changed since '08 when they bailed out the bankers and handed us the bill.

hangemhigh's picture

To:  dwdollar
on Tue, 12/28/2010 - 14:58


"The Tea Party is a small subset of the Republican Party and the Republican Party isn't much changed since '08 when they bailed out the bankers and handed us the bill."

The Republican campaign platform for 2012 has been delineated and it is, literally, a giant stone statue come to life.  A plodding re-reun we’ve all seen many times, every voter knows this Mesozoic melodrama by heart.

In “Tax Cuts R Us” a dinosaur, trickle-down tax policy hooks up with some ruinous pork barrel borrow and spend initiatives and they spend the rest of their lives trying to escape another lethal round of GOP deregulation of the financial markets.  

The message of this antediluvian, ‘booty flavored rice ball’  is simple in the extreme:  A hideous creature has taken over people's minds and the result is a demented GOP mockumentary called “Tea Party Agitprop: Change You Can Believe In”. 

Yits and the Yimrum's picture

nice commentary

notice how the Rethug Senators vote for the Obama program, which is basically "death to the people"

the Tea smokers were infiltrated by manipulative statists ever before their first big ralleys

voting, Ron Paul and the Tea Scammers will change nothing, except the flavor of hopium/divide and conquer on the Sunday morning shows

walküre's picture

Then what?

The damage has been done. Trying to unwind this mountain of debt with max. pain and suffering through taxation and higher rates would even make the tea baggers run for the hills in Alaska where they probably belong.

Good grief.

The fucking problem is entitlement, socialism, unfunded liabilities, fantasy budgets and so on.

Unless the tea bagger's great plan is to destroy all society as we know it, they have no other options but to keep with the program and "pretend and extend".

FYI. Tea baggers are going to put the next fucking war loving, war making President in the White House.

That is the fucking strategy all along. Just follow the money and see who is funding the tea baggers.

Are you really that stupid that you need to get DUPED again?

Internet Tough Guy's picture

You certainly seem to have been duped. Are you on the Nobel peace prize awarding committee?

walküre's picture

I just saved $200 on car insurance!

or dbl post

walküre's picture

Here's a clue for you, free of charge

The same people that made it their concerted effort to put George W. Bush into the WH are now pumping the propaganda of the tea baggers.

Politics are like the market and the parties including the tea baggers are like stocks.

The tea bagger IPO was quite remarkable. The promo efforts were great and well sown.

People are taking the bait just as they took the bait on GWB. The rise of GWB, Karl Rove's ministry of propaganda and the surge of "reborn" Christians and mega churches in the US were not a coincidence. The churches campaigned for GWB and made an effort to rally the American "faith based" community for a stupid and expensive war that served only one purpose.

Sorry kiddo, but that's how the cookie crumbled. I have to admit though, their propaganda was darn well packaged and executed.

Now, having said that. I don't need your lecture on the community organizing duh-dolt President that is probably less American than the teleprompter he needs to spew his propaganda.

It's all the same.

chopper read's picture

i have to tell you, I support the tea party entirely, but i agree with your analysis to some degree.  Yes, there are powerful forces that are seeking to hijack and derail the movement.

the military industrial complex is making a Lenin-esque powerplay to protect themselves.

"The best way to control the opposition is to lead it ourselves." 
— Vladimir Ilyich Lenin

however, there is a libertarian element to the tea party which is anti-war.  further, a great deal of tea party supporters are simply for smaller government (reduced federal powers/laws/intervention) and a return to a society that more closely represents that which is outlined in the U.S. Constitution.  

of course, none of this matters as long as we remain enslaved within a debt-based monetary system.