Epic Bond Rout Leads To Biggest Weekly Percentage Surge In 5 Year Yield In History

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Fri, 07/01/2011 - 12:50 | 1419306 hedgeless_horseman
hedgeless_horseman's picture

Ever, bitchezzz!!!

Fri, 07/01/2011 - 13:52 | 1419553 jswede
jswede's picture

seriously ZH ?

you don't measure bond moves in yield.  it was a 1.83% sell-off in price.

wow, what a rout.

Sat, 07/02/2011 - 05:24 | 1421024 XPolemic
XPolemic's picture

You do realize that 45 bips over 5 years is 1.24% right?

Or were you joking?


Fri, 07/01/2011 - 14:23 | 1419645 Panafrican Funk...
Panafrican Funktron Robot's picture

2 year's been pretty fuggalicious as well.

Fri, 07/01/2011 - 12:48 | 1419307 JimBobOMG
JimBobOMG's picture

Cash for gold?

Fri, 07/01/2011 - 12:49 | 1419308 alexdg
alexdg's picture

Is Bernankes' oatmeal getting cold again?

Fri, 07/01/2011 - 13:02 | 1419378 camoes
camoes's picture

hahah +1

Fri, 07/01/2011 - 13:13 | 1419426 Xibalba
Xibalba's picture

Obummer's tryin to win friends on Wall St.  Donations bitchez!

Fri, 07/01/2011 - 12:50 | 1419319 PaperBear
PaperBear's picture

Does this surprise any ZH reader ?

I think not.

Fri, 07/01/2011 - 12:55 | 1419327 slaughterer
slaughterer's picture

We knew this, but it is nice to see it documented for the public.

Fri, 07/01/2011 - 14:21 | 1419633 kito
kito's picture

surprises me. china has come out and stated the will prop up europe and lend to any struggling countries. surely they wouldn't do it to the detriment of the u.s.

Fri, 07/01/2011 - 14:34 | 1419695 SheepDog-One
SheepDog-One's picture


Fri, 07/01/2011 - 21:27 | 1420632 phyuckyiu
phyuckyiu's picture

Paging sheep dog, paging sheep dog, lost sheep on aisle 13, need assistance STAT. Rut Roh.

Sat, 07/02/2011 - 02:46 | 1420869 phyuckyiu
phyuckyiu's picture

Surely China isn't upset about us blowing up/locking them out of 10 billion plus in investments in Libya they had ongoing. Right?

Fri, 07/01/2011 - 12:51 | 1419324 Jack Mehoff
Jack Mehoff's picture

Just getting started?

Fri, 07/01/2011 - 12:55 | 1419328 wombats
wombats's picture

So what does this indicate?  Does it mean that interest rates at banks will go up?  Does it indicate that PM or other commodity prices should go up or down?

Fri, 07/01/2011 - 12:58 | 1419338 1100-TACTICAL-12
1100-TACTICAL-12's picture

the Empire continues to crumble..

Fri, 07/01/2011 - 13:08 | 1419388 lawrence1
lawrence1's picture

It means BPGSFAYC .... buy as much physical gold and silver as you can as fast as you can while its still available at these relatively low prices considering the tsunami of paper flooding the world.


Fri, 07/01/2011 - 13:45 | 1419513 Stax Edwards
Stax Edwards's picture

It indicates that when the money spigot is turned off, interest rates rise quickly.  The banksters doth protest, turn the printers back on.

Fri, 07/01/2011 - 13:51 | 1419536 Dr. No
Dr. No's picture

Since only the biggest banks in the US control the spigot and since the spigot has been turned down, the banksters you indicate who are protesting, must be banksters outside the circle of trust.  The fat cats control the spigot.  Everyone else is on their own.

Fri, 07/01/2011 - 12:56 | 1419329 Cassandra Syndrome
Cassandra Syndrome's picture

QE can never end

Fri, 07/01/2011 - 12:53 | 1419334 youngman
youngman's picture

we all knew this...but what we don´t know is how much??? its 29.71% this week...but will it be 297.1% in one month????? That my boys is what makes me drink.....and cry as I watch gold and silver getting hit hard...

Fri, 07/01/2011 - 12:54 | 1419340 PaperBear
PaperBear's picture

Will we see the yield at 10 in short order then QE-steriods ?

Fri, 07/01/2011 - 12:58 | 1419341 slaughterer
slaughterer's picture

"As for the naive follow on moves in the equities, it is merely a risk transfer."

A "risk transfer" that leads to what, exactly?  Please, go a little further...

Fri, 07/01/2011 - 13:53 | 1419541 Bananamerican
Bananamerican's picture

hey, don't junk the man for asking questions....

anyone buying equities is a soon to be shorn sheep.

risk transfer=bag holder

Fri, 07/01/2011 - 12:54 | 1419342 Lone Mad Minute...
Lone Mad Minute Medic's picture

Why isn't TBT surging? Why are the PM's down? We're being bamboooziled! Where is the deer in the headlights? Because that is what is happening to us

Fri, 07/01/2011 - 13:10 | 1419408 lawrence1
lawrence1's picture

You expect rationality in phony markets?  Phony PM paper prices are down, meaning you have yet another chance to exchange failing fait for real money.  Get out of all paper, stop trading, starve the beast and, of course, buy as much PM as you can as fast as you can.

Fri, 07/01/2011 - 12:59 | 1419344 nicktd
nicktd's picture

Guess china had enough

Fri, 07/01/2011 - 12:55 | 1419348 ssp2s
ssp2s's picture

No problem.  The government's exploding cost of servicing its debt is just offset by all the capital gains taxes from everyone cashing in equities.

Algos DO pay taxes don't they?

Fri, 07/01/2011 - 13:36 | 1419501 Cthonic
Cthonic's picture

Algos DO pay taxes don't they?

On equity capital gains? Not if they are foreign nationals.

Fri, 07/01/2011 - 13:54 | 1419522 firefighter302
firefighter302's picture

ssp2s, you just gave me a "light bulb over head, suddenly illuminating" moment.



Fri, 07/01/2011 - 12:56 | 1419350 PaperBear
PaperBear's picture

Meanwhile paper silver price slides to $33.37/oz.

Fri, 07/01/2011 - 13:29 | 1419477 topcallingtroll
topcallingtroll's picture

waiting for the 200 dma for a quick trade.

Fri, 07/01/2011 - 12:59 | 1419354 Boston
Boston's picture

Oversold, big-time.  Buy it.  

In a few weeks, reality will set in---QE and fiscal austerity will soon begin.  Breakevens will collapse, and so will yields.

It happened in 2010 (remember, yields didn't collapse until about a month after QE1 ended).  The same thing will happen in 2011.

Fri, 07/01/2011 - 13:06 | 1419371 ghostfaceinvestah
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Fri, 07/01/2011 - 13:07 | 1419383 ssp2s
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It happened in 2008, and surging yields quickly choked the economy.

Well, by "quickly", a couple of months later.

Fri, 07/01/2011 - 14:38 | 1419703 Chump
Chump's picture

I thought the whole point of QE was to keep austerity at bay...How/why would both happen concurrently?

Fri, 07/01/2011 - 13:03 | 1419361 mayhem_korner
mayhem_korner's picture

Anyone else hear John Williams' Jaws score in the background?




Fri, 07/01/2011 - 14:26 | 1419650 Temporalist
Temporalist's picture

I hear this John Williams:


According to John Williams of Shadow Government Statistics, if the U.S. government used GAAP accounting principles the "real" U.S. government budget deficit each year would be somewhere in the neighborhood of 5 trillion dollars.  Williams believes that the U.S. government is essentially bankrupt and that our current system is not anywhere close to sustainable....

Generally, you'll find that the accounting for unfunded liabilities for Social Security, Medicare and other programs on a net-present-value (NPV) basis indicates total federal debt and obligations of about $75 trillion. That's 15 times the gross domestic product (GDP). The debt and obligations are increasing at a pace of about $5 trillion a year, which is neither sustainable nor containable. If the U.S. was a corporation on a parallel basis, it would be headed into bankruptcy rather quickly."






"John Williams at ShadowStats.com still runs the numbers the way they were in those bygone days. Let’s recalculate…

22.3% unemployment + 11.2% consumer price index = 33.5% misery index

That compares to a peak misery index of 22.0% in June 1980."


Fri, 07/01/2011 - 13:04 | 1419364 n00b tube
n00b tube's picture

Risk transfer out of bonds, into equities?


Fri, 07/01/2011 - 13:05 | 1419367 Misean
Misean's picture

I guess THIS is what Bernutty meant by ending inflation in 15 minutes...

Fri, 07/01/2011 - 13:10 | 1419396 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Geithner's replacement is going to have to deal with a sh*tstorm of debt obligations.

Fri, 07/01/2011 - 13:14 | 1419433 Misean
Misean's picture

It's baked in. Playing brinksmanship in Warshington with the "debt ceiling" for a few more weeks while they do some maintenance work on the printer arrays. QE3 rolls out shortly after an "agreement" is reached.

The chaos caused by all of this will amplify the inflationary impacts of printing as it becomes impossible for producers of real stuff to plan production with any significant lead time.

Fri, 07/01/2011 - 13:54 | 1419561 Bananamerican
Bananamerican's picture

+ that

Fri, 07/01/2011 - 13:23 | 1419457 narapoiddyslexia
narapoiddyslexia's picture

Why does anyone think Geithner is leaving? He's running down the ratlines, folks, ahead of the pack.

Fri, 07/01/2011 - 14:03 | 1419587 11b40
11b40's picture

He is not going anywhere.  Just another in a long line of rumors, with many more to come, I'm sure.

No way Obummer puts up a new T.Sec. for Senate confirmation between now and the election.  Period, end of story.  Timmy could be caught naked in bed with 2 sheep and doberman & would still stay on through 2012.

Fri, 07/01/2011 - 14:31 | 1419671 narapoiddyslexia
narapoiddyslexia's picture

No doubt the sheep and Doberman would recant after it was revealed they'd rec'd $100k each from a drug dealer.

Fri, 07/01/2011 - 20:47 | 1420597 pgarner
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Fri, 07/01/2011 - 14:30 | 1419684 Richard Chesler
Richard Chesler's picture

He has direct orders from Goldman NOT to speak to hotel maids.

Fri, 07/01/2011 - 17:49 | 1420296 Kayman
Kayman's picture

Do you actually think there are a couple of sheep or a Doberman that would stoop so low ?

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