• BullionStar
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Horrible 5 Year Auction Sends Treasury Complex Into A Tailspin, 5 Year Yield Surges 22 Bps In Two Days

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Tue, 06/28/2011 - 13:15 | 1409273 Turd Ferguson
Turd Ferguson's picture

Let's see...

No QE = higher rates

Higher rates = death to The Great Ponzi

Death to The Great Ponzi = loss of power for TPTB

Conclusion: QE can't and won't ever end.

Tue, 06/28/2011 - 13:16 | 1409283 SheepDog-One
SheepDog-One's picture

And on the other hand, QE cant continue either....the great conundrum. Painted themselves into a corner with La Brea tar.

Tue, 06/28/2011 - 13:40 | 1409372 Hulk
Hulk's picture

Stuck betweek a rock and a hard on...

Tue, 06/28/2011 - 14:15 | 1409491 tmosley
tmosley's picture

You misspelled "cock".

Tue, 06/28/2011 - 15:00 | 1409647 Hulk
Hulk's picture

Not in Hulkville!

Tue, 06/28/2011 - 18:02 | 1410151 Problem Is
Problem Is's picture

Turd has spoken...

In the words of that great contrarian investor Scooby Doo:

"Rhut, rho..."

Tue, 06/28/2011 - 14:10 | 1409467 LowProfile
LowProfile's picture

Painted themselves into a corner with La Brea tar.

More like with napalm.

Tue, 06/28/2011 - 13:21 | 1409286 Boston
Boston's picture

No QE = higher rates

Nope.  Counter-intuitively, the opposite happened in 2010 when QE ended.  Rates fell.  Check for yourself.

After last week's massive rally, this is a very normal pullback (in prices).

Buy on the dips!

 

Tue, 06/28/2011 - 13:19 | 1409295 SheepDog-One
SheepDog-One's picture

LOL, rates going negative...'thats just normal'...oh ok.

Tue, 06/28/2011 - 13:22 | 1409305 Boston
Boston's picture

Nobody said negative (unless you're talking about the 30 day bill which just did) on the 5 year.  Just closer to ~1.0% before the big reversal, when QE3 gets pre-announced.

Again, study last year's template: the huge move DOWN in rates happened AFTER qe1 ended.  QE2 ends in a couple of days.....

Tue, 06/28/2011 - 13:29 | 1409315 SheepDog-One
SheepDog-One's picture

The 'template' is 'Get everyone 100% sure there will be never ending QE's, then pull the trap door out from under their sheeple asses'.

Watch and see.

Tue, 06/28/2011 - 13:44 | 1409386 Boston
Boston's picture

If no QE3 arrives, then all the better for a long trade (NOT buy & hold) in Treasuries.

Without QE3(etc.), what will the sheeple do?  Panic.

Where will they run to when they panic?

Short-term Treasuries.

 

Tue, 06/28/2011 - 13:50 | 1409412 eureka
eureka's picture

Perhaps. For a very short term hold. Till treassuries perceived "flight to security" status is revealed to be fraudulent. Sometime this winter.

Tue, 06/28/2011 - 14:01 | 1409435 Boston
Boston's picture

Exactly.

I was short in the fall 2010.  There's little doubt that a rally won't last.

But in the meantime, why not grab an opportunity to profit (or avoid losses).  If everyone is so bearish here, and risk assets (especially US equities) are still near their recent multi-year highs, then why not gain from what will almost certainly be a flight to safety when the shit hits the fan?

We've seen this movie (clip) before....last summer.  We know how it ends.

Tue, 06/28/2011 - 16:36 | 1409914 Glasgow Gary
Glasgow Gary's picture

The script is exactly as you say, except in 2011 it has already played out. Stocks have already corrected to price in QE2's end, and UST have already rallied. There is no "event" that occurs this week. The event has already occurred. To hold the view that the shit hits the fan starting after June 30, you have to believe something changes. It doesn't. The FED will still invest maturities and divs from their total balance sheet. Also, there will be less flipping of UST to the FED. You should use your script and consider a twist: UST just hit their price highs for the year.

Wed, 06/29/2011 - 04:19 | 1410912 Urban Redneck
Urban Redneck's picture

I think the flight to safety has been called into question by the utter lack of flight to safety so far in 2011.  However, bank recapitalization will force banks to raise capital through debt or equity offerings then lever it up and buy US Treasury securities to meet Basel 3 & D-F tier 1 requirements.  But it's still only short term cover for the thieves in Washington.

Tue, 06/28/2011 - 14:30 | 1409534 kito
kito's picture

you are all obsessed over qe3 coming. not coming this year. fed not worried about deflation now. stocks holding their own. kiss fed balance sheet expansion goodbye for a long time.

http://www.reuters.com/article/2011/06/28/usa-fed-fisher-idUSN9E7GO02Q20110628

 

 

Tue, 06/28/2011 - 13:24 | 1409312 Cdad
Cdad's picture

Brother Dog,

I have a lot of cash sitting in my account.  Ummm, tell you what, I'll loan it to you and pay you interest on the loan.

K?

 

Tue, 06/28/2011 - 13:30 | 1409321 SheepDog-One
SheepDog-One's picture

OK brother! Just as soon as I buy me some more LULU and Monster energy drink stocks.

Tue, 06/28/2011 - 13:48 | 1409404 eureka
eureka's picture

10 YR note up 10 basis points.

Tue, 06/28/2011 - 23:05 | 1410629 mophead
mophead's picture

I concur, this is what I expect. If rates do go up, they'll come back down again, and then some.

Tue, 06/28/2011 - 13:20 | 1409298 Turd Ferguson
Turd Ferguson's picture

Just for fun I junked myself, too.

Tue, 06/28/2011 - 13:24 | 1409299 Turd Ferguson
Turd Ferguson's picture

And I just junked that, too, and this.

Tue, 06/28/2011 - 13:25 | 1409300 Turd Ferguson
Turd Ferguson's picture

And this.

Tue, 06/28/2011 - 13:29 | 1409318 idea_hamster
idea_hamster's picture

Junk-ception.

Tue, 06/28/2011 - 13:35 | 1409353 taisen
taisen's picture

I LOL'd

Tue, 06/28/2011 - 13:28 | 1409329 El Hosel
El Hosel's picture

 Turd,

 Take this and put it were the Junk don't shine

 

http://www.youtube.com/watch?v=ZUabDrfjATY

Tue, 06/28/2011 - 18:06 | 1410158 Problem Is
Problem Is's picture

I am now using the <JUNK> button as a thumbs up on a post...

So I <JUNK> you too Turd...

Tue, 06/28/2011 - 13:21 | 1409301 slow_roast
slow_roast's picture

ego-implosion in 5..4..3..2...

Tue, 06/28/2011 - 13:30 | 1409320 jus_lite_reading
jus_lite_reading's picture

SOME trolls are junking the TRUTH!! they HATE Zerohedge and what it stands for because it is exposing the truth!!!!! CROOKED BANKSTERSS!!!!!!!!!!

Tue, 06/28/2011 - 14:32 | 1409541 NotApplicable
NotApplicable's picture

You might get less junks if you stayed off of the caps lock, and were a littke more restrained with the exclamation points.

Just sayin.

(BTW, I didn't junk you.)

Tue, 06/28/2011 - 15:50 | 1409772 jus_lite_reading
jus_lite_reading's picture

Some sick basturd just likes to junk everyone...... must be BEnron

Tue, 06/28/2011 - 13:28 | 1409313 jus_lite_reading
jus_lite_reading's picture

TURD!!! YES!!! BUT WHAT ABOUT THE THINGS THEY CANT CONTROL??

NEW JERSEY NUCLEAR POWER PLANT IN HOT SHUT DOWN AS COOLING FAILS!!!!!! HOLY SHITTT!!!!!

http://fiatsfire.blogspot.com/2011/06/countdown-tuesday-momentous-vote-to.html

AND PAY PAL CLOSES THEIR MONEY MARKET FUNDS!!! HOLY SHIT!!! TIMES 14 TRILLION!!! BIG NEWS!!!

Tue, 06/28/2011 - 13:31 | 1409326 SheepDog-One
SheepDog-One's picture

DAMN thats like 3 or 4 nuclear disasters going on in the US, and all anyone seems to care about is fucking LULU stocks! WTF!

 

Tue, 06/28/2011 - 13:38 | 1409349 Cdad
Cdad's picture

Perhaps, the leotards are isotope resistant?

Tue, 06/28/2011 - 15:49 | 1409770 jus_lite_reading
jus_lite_reading's picture

THIS IS THE REAL PROBLEM!!!

http://theeconomiccollapseblog.com/archives/economic-recovery

ITS BAD!!!!

Tue, 06/28/2011 - 13:41 | 1409376 Hulk
Hulk's picture

Reminds me, I need to close out my MMF's and convert before its too late...

Tue, 06/28/2011 - 13:55 | 1409415 kito
kito's picture

yes, reeeeaal lite reading

Tue, 06/28/2011 - 13:18 | 1409274 redpill
redpill's picture

Paging Mr. Gross, paging Mr. Gross

Tue, 06/28/2011 - 13:15 | 1409276 slow_roast
slow_roast's picture

Are the market chugs higher.  I think I'll hang on to my short positions now...next week could be ugly.

Tue, 06/28/2011 - 13:34 | 1409337 Re-Discovery
Re-Discovery's picture

Today is all AUM (Assets Under Management).  Desks pumping on vapo thin volume to get that one last summer bonus.  Then the massive selling post QE2 to get further QE.  Thursday's the day.

Tue, 06/28/2011 - 13:42 | 1409346 slow_roast
slow_roast's picture

Yep, I agree that this vapo-rally will end very soon.  "Good" news out of Greece could push it a bit higher but in the coming weeks and months it's difficult to see what will impel this market higher.  Taking up shorts accordingly and hording cash.

 

Good luck!

Tue, 06/28/2011 - 14:24 | 1409524 kito
kito's picture

yes next week could get ugly, or the week after that or the week after that. funny thing though, it never seems to happen. still waiting.....

Tue, 06/28/2011 - 13:15 | 1409280 HelluvaEngineer
HelluvaEngineer's picture

I starting to think this end of POMO thing is going to work out just fine.

Tue, 06/28/2011 - 13:19 | 1409281 4shzl
4shzl's picture

Squeeze and dump -- just da boyz doin' their thang.

Tue, 06/28/2011 - 13:18 | 1409290 SheepDog-One
SheepDog-One's picture

Come on Robo, I see you junking every post again you little clownfart.

Tue, 06/28/2011 - 13:22 | 1409306 Cassandra Syndrome
Cassandra Syndrome's picture

When Austerity hits the US, who will pay Robo to troll this website?

Tue, 06/28/2011 - 13:31 | 1409336 Arius
Arius's picture

austerity is for masses not likes of Goldman Saks ... :-) ...just for fun ...

Tue, 06/28/2011 - 13:22 | 1409291 aint no fortuna...
aint no fortunate son's picture

and stocks gun higher...

Tue, 06/28/2011 - 13:23 | 1409294 rubearish10
rubearish10's picture

It can't be this simple. It would be the most anticipated trade (sell UST's) ever! Something will happen to change this. If not a QE morph the event can and should be pervasive stock selling. Get the 30 day T-Bill all the way back to 12bps and roll out the asset buying spree, yet again. You should own "more" Gold by then.

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