PIMCO Denies Unfounded Rumors It Is Buying Bonds

Tyler Durden's picture

Just to set the record straight following various spurious and less than credible reports floated in the peripheral media this morning, El-Erian sets the record straight on a Bloomberg radio interview.

  • Pimco's El-Erian says Pimco not buying US treasuries

So simple a caveman can understand it.


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lizzy36's picture

So what or who pinned the 10 year yesterday?

Tyler Durden's picture

Fed accumulating TYZ1 long strangles. Pimco on the other side. Head on collision imminent.

FOC 1183's picture

Apparently pinning 10yr eur cds not quite as easy

RichyRoo's picture

Where does the FED invest its pension money? Do they care about it?

Sudden Debt's picture

The Cayman Islands.



nonclaim's picture

Where does the FED invest its pension money?


Do they care about it?

If you mean moral issues, no.

disabledvet's picture

awwww.  don't tell me you are still non-claimed.

nope-1004's picture

I knew it was a lie when I heard it.  But that's how our gov't moves the markets these days.... through rumors, innuendo, and propaganda.

whatsinaname's picture

OT: here is a comment from the message boards on a yahoo oil pump (and now force dump) article ---

Like Oil Everything Must Peak --- Obama Peaked in Early 2009...


Hope and Change ...... in 2008

... Worthless in 2011

spiral_eyes's picture

the federal reserve is now the world's biggest hedge fund. 

jus_lite_reading's picture

Thats what has got me worried! WHAT THE HELL happended to the 10s5s? Taken out and shot and all of a sudden TIMMY TURBO GEITHNER says the US is RISK FREE?!?!?!

Astute Investor's picture

Agree PIMCO is on the other side, but wouldn't the Fed be SHORT TYZ1 strangles?

disabledvet's picture

there was an "atmosphere of an assassin" being present going into this S&P "warning."  "We were warned" were we not...on this site no less!...that "Goldman Sachs is coming for us."  A compliment indeed, yes, yes?  So far I'm unimpressed if this was some sort of "entry point" to "get in the game" as Cramer says.  It is interesting to "think of this as an entry point for PIMCo" but "you don't just move a trillion dollar FIXED INCOME portfolio" based upon "Standard and Poors."  No...S&P's "warning" reeks of at a minimum incompetent timing (hello!  there goes your debt ceiling morons!) or just plain "info" incomptence as "it is not news that projections of economic growth are being revised downward."  What would be news is "equity markets reject said news and push higher" as "the Janus coined rally" remains intact.

Id fight Gandhi's picture

Who started the rumor? That's the question.

holdbuysell's picture

Ask CNBS for their source....they discussed this today.

The Hawk's picture

I cannot stand listening to Geitner or most news ppl for that matter.  I watched him on Meet the Press and the garbage coming out of his mouth made me want to jump through the TV and kick him in the nuts!  I'm not sure anymore if they actually believe the shit coming out of their mouths or if they know its all bullshit.

The Count's picture


Geithner, Obama... There is a pattern here. Weak, gullible meat puppets that can be told to do whatever the guys in the shadows want.


DeadFred's picture

Go with "they know its all bullshit".  They're not stupid.  They just think most of us are.  When someone is lying to you and you know they know they're lying it's time to protect your wallet.

The Hawk's picture

The thing is most people are to stupid or ignorant to know its all BS... People think times are tough now... At least in the depression they still knew how to survive with nothing.  Without a McDonald's to pull up to what are people going to do?  Or better yet no government check in the mailbox every month?  Poor little fellas...

el Gallinazo's picture

Can people lie to you and not know that they are lying? Doesn't that just make them stupid or ignorant? Just a comment from the Dept. of Redundancy Dept.

The Hawk's picture

Maybe... It starts off as a lie but they say it so many times and are always in "character" that they start to believe the crap coming out of their mouths. I've had a few friends like that... it's weird.  

NotApplicable's picture

 “When I use a word,” Humpty Dumpty said, in a rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
    “The question is,” said Alice, “whether you can make words mean so many different things.”
    “The question is,” said Humpty Dumpty, “which is to be master      that’s all.”

Rainman's picture

Going to zero on UST was a clever hoax from the outset.

CD's picture

But wait, doesn't the official denial constitute absolute certainty...? ;-)

Youri Carma's picture

Since I am a caveman I can understand it :)

I also want to dismiss the idea we all came from Africa. That's just impossible since I know my family is even too lazy to walk to the door let alone all the way from Africa ;)

Our family are all caveman Neanderthalers with little brains and big noses but with good appetite. :)

web bot's picture

I'd like to see you go head to head with Geithner, but I know they won't let you.

RobotTrader's picture

As of right now, bonds remain in a 35-year bull market.

And that bull market is likely to continue unless stocks take off from here and make new highs.

As long as we remain in a trading range, there will always be a maniacal bid to get into Tresuries at the slightest whiff of a possible 15% correction in the SPY.

HamyWanger's picture

Must agree with my bro' Robot on this one. 

A 35-year bull market in bonds/stocks/real estate is normal and set to last, but it would be a bubble for precious metals and canned ham.

Why? Because this is the rules of the game. Lunatic goldbugs need to deal with it: the Pigmen will always bend the rules and print infinite fiat to maintain the "status quo" 

spiral_eyes's picture

bernanke is playing king canuut. gonna get fucked up by a tsunami of reality. you can't eat a 10-year. nor an ipad. you can't print your way to economic prosperity. that will be the key lesson of the post-1971 world, surely to be forgotten when the new chinese empire (who started this fiat game a millennium ago) print their prosperity away in 100 years just the way we are doing now.

disabledvet's picture

we havn't had a bubble in gold for some time now.  canned ham even longer.  interestingly "gold is mugging real estate."  did someone claim gold is money 'round these parts because no matter how often i'm told by government officials "i sure don't believe debt is money."

Robot Traders Mom's picture

Seriously, stick to just being a dipshit because you know NOTHING about the bond market.


whatsinaname's picture

Hey Mommy, did the Thom(p)son twins get their diapers on right ? They are gonna need them soon.

buzzsaw99's picture

Funny, that is the first thing it has written that actually made sense.

Iam_Silverman's picture

"As long as we remain in a trading range, there will always be a maniacal bid to get into Tresuries at the slightest whiff of a possible 15% correction in the SPY."

Plus, as long as they maintain at least an investment grade, many of the "Stable Value" funds can find little else to buy and still meet their stated aversion to risk, offering small (yet predictable) returns, while preserving the clients principal.  GIC and Synthetic GIC have only so much volume......

Youri Carma's picture

Housing was in a bull market too.

And what about: FRAUD: Federal Reserve Is Selling Put Options On Treasury Bonds To Drive Down Yields http://youtu.be/ZnZnkaq8Nf8   Doubling Down To (DXY) Zero: Has The Fed, In Its Stealthy Synthetic Bet To Keep Long-Term Yields Low, Become The Next AIG? http://www.zerohedge.com/article/did-fed-its-stealthy-synthetic-bet-keep-yields-low-become-next-aig


rufusbird's picture

Thanks for posting that, I was telling friends about it but couldn' t find it. Now I know why. I was able to send them the video link. Worth watching...

SheepDog-One's picture

OH I see....Robo is suddenly a bond hoarder! Oh sure.

Hey Robo where'd you get the new pic of tangerine tits there, and what happened to catfishmouth? She was far better.

disabledvet's picture

you forgot to add "ARF! ARF!"

virgilcaine's picture

ZH..He's been doing a great job..

web bot's picture

in other words... CNBC.

Josh Randall's picture

PIMPCO probably started it themselves -- oh wait, nevermind ya it was Liesman

virgilcaine's picture

There has been a bear mkt in bonds for the last  10 Yrs in terms of purchasing power via the declining Dollar. You lost if you wern't in precious metals, it's as easy as that. 

Take a look inside any of your local small-med size  Banks for activity, they are museums due to ZIRP. 


gordengeko's picture

Nice touch TD, that made me laugh.

monopoly's picture

This casino is so broken I have no interest in it outside of miners, gold, silver. Gives me that warm fuzzy feeling. Long way to go. And I just buy more physical on dumps. Been a while for that. But, it will occur.


TruthInSunshine's picture

All I have to say is that the last decade has been a wild one.

I'm more cynical and much wiser for everything I've watched.

But the last two years and the last 6 months, especially,....well.....adjectives are hard to find to fully impart the meaning I would need to convey regarding my thoughts.

Madoff was absolutely correct when he stated that the economy right now - and the ways by which The Bernank & the government are propping it up - are the biggest Ponzi Scheme the world has ever known.

jkruffin's picture

Anyone know where the little guys like us can buy Greek bonds?  I might just throw a few duckies at some, if I can find out where you can get them.  Any info is appreciated, thanks.