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

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Wed, 05/18/2011 - 09:14 | 1286599 LawsofPhysics
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What's that?  Goldman is now buying bonds?  Wouldn't they want to manipulate yields up first?

Wed, 05/18/2011 - 09:21 | 1286642 topcallingtroll
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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.

Wed, 05/18/2011 - 09:01 | 1286603 hugovanderbubble
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Blankfein should be in jail for ever.

Paulson and Geithner and Greenspan.

 

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

 

 

Wed, 05/18/2011 - 09:22 | 1286643 rocker
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+1   When will Congress, DOJ or the SEC investigate and prosecute this crook.

Wed, 05/18/2011 - 09:27 | 1286665 Careless Whisper
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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



Wed, 05/18/2011 - 09:01 | 1286604 topcallingtroll
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I guess they are trying to prove their independence of the government.

Wed, 05/18/2011 - 09:19 | 1286639 bigdumbnugly
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well that convinces me!

 

not

Wed, 05/18/2011 - 09:06 | 1286617 oogs66
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we must be about a week away from one of their strategists calling a sell on stocks and spooking a flight to quality trade :)

Wed, 05/18/2011 - 09:15 | 1286636 bigdumbnugly
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that's been the roadmap...

Wed, 05/18/2011 - 09:13 | 1286628 Johnny Lawrence
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The great contrarian trade...tin foil hats and the big brokerage firms are all bearish on bonds.

Wed, 05/18/2011 - 09:15 | 1286637 Hondo
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??

Wed, 05/18/2011 - 09:22 | 1286645 Boston
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.

Wed, 05/18/2011 - 09:25 | 1286652 ivana
ivana's picture

ha ha told ya!

Now wait for soros to become "bullish" on bonds

Wed, 05/18/2011 - 09:26 | 1286654 Dr. No
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.

Wed, 05/18/2011 - 09:55 | 1286766 4shzl
4shzl's picture

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

Wed, 05/18/2011 - 10:20 | 1286851 buzzsaw99
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When the squid speaks, people :roll:

Wed, 05/18/2011 - 10:34 | 1286949 belsebub
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What does LP mean?

Wed, 05/18/2011 - 13:40 | 1287914 TempFlashback
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Limited Partnership

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