Ben Loses The Long End
Today's NFP data has sent the treasury complex in a tizzy: the 30 year has now lost its support levels and the yield is up 6 basis point to 4.72%. And since this move would have been expected in the case of a huge NFP beat ('economy improving' rhetoric), but not on today's atrocious result (and if the BLS needs the services of snowy apologists, like DB'a LaVorgna whose only job lately is to explain why economic data are subpar due to the motion of celestial bodies, perhaps it needs to refine its seasonal adjustment to account for snowfall in, gasp, winter), this is merely yet another indication that the long-end vigilantes are once again making a push for an outright QE3 announcement, a development which was predicted by Zero Hedge at the time QE2 was launched.
Below one can see the massacre in the long-end ever since the launch of QE2.
The 2s10s are about to take out highs.
And the only winner is...