Goldman Reiterates It Is Bearish On Bonds, But For The Wrong Reason

Tyler Durden's picture

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LawsofPhysics's picture

What's that?  Goldman is now buying bonds?  Wouldn't they want to manipulate yields up first?

topcallingtroll's picture

Looks like a real call.

But i think they also want people to think they and the obama administration are not one and the same.

hugovanderbubble's picture

Blankfein should be in jail for ever.

Paulson and Geithner and Greenspan.

 

Goldman Sachs has crashed the world with HSBC and JPMorgan...

 

 

rocker's picture

+1   When will Congress, DOJ or the SEC investigate and prosecute this crook.

Careless Whisper's picture

CDS Short Squeeze, GoldmanSachs style (from an internal email, courtesy Senator Levin - page 426)

We should start killing the sn [single name] shorts in the street – let’s pick some high quality stuff that guys are hoping is wider today and offer protection tight – this will have people totally demoralized.”1743



topcallingtroll's picture

I guess they are trying to prove their independence of the government.

bigdumbnugly's picture

well that convinces me!

 

not

oogs66's picture

we must be about a week away from one of their strategists calling a sell on stocks and spooking a flight to quality trade :)

bigdumbnugly's picture

that's been the roadmap...

Johnny Lawrence's picture

The great contrarian trade...tin foil hats and the big brokerage firms are all bearish on bonds.

Hondo's picture

Sounds like Koo's explanation.  Now besides low interest rates the minions of the FED are trying to force investors out of Treasury's into risk assets at an alarmist pace.  Will the FED be able to continue the liquidity game long enough to totally and with finality steal the wealth of investors??

Boston's picture

On the other hand, with GS clients urged to sell bonds, that means that as usual Goldman is buying, so take the typical reverse psychology approach to any Goldman call with a grain of salt.

Bingo!  Makes me feel better about being long.

A breach of the yield levels alluded to earlier (i.e., 2.8% on TY10) would represent a more than 1 standard deviation departure from our measure of ‘fair value’.

Funny, that's exactly my first target to start exiting my Treasury longs.  But it'll take a much bigger, and prolonged Risk-Off period to get there.  I'm thinking June-August, almost mirroring last year's bearish phase.

ivana's picture

ha ha told ya!

Now wait for soros to become "bullish" on bonds

Dr. No's picture

With the treasury raiding pensions, is this bullish for bonds?  By raiding the pensions, the Treasury no longer needs to sell bonds.  A huge supply source is gone.  Is this true?  If they FED maintains it current rate of purchase, this should be a bump in prices.  If the FED cuts back, this will be bearish for stocks.

4shzl's picture

Short Treasuries = widowmaker.  Just ask the wise guys who've been shorting the JGB for the last decade or two.

buzzsaw99's picture

When the squid speaks, people :roll:

belsebub's picture

What does LP mean?