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Chart of the Week Video: Treasury Yields Spike....So?

thetechnicaltake's picture




 

This week’s Chart of the Week video looks at the spike in yields on the 10 year Treasury bond and asks: what does it mean?

So let’s get technical.

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vow 5.12.13.yields from ARL Advisers, LLC on Vimeo.

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Mon, 05/13/2013 - 12:24 | 3556471 asteroids
asteroids's picture

While I agree with some of the video, "all bets are off" due to QEinfinity. The dislocations when it stops will be weird and biblical.

Mon, 05/13/2013 - 15:33 | 3557418 dontgoforit
dontgoforit's picture

'weird & biblical' - so true.  there's pushing 8 billion of us now - it's gonna be a mess

Mon, 05/13/2013 - 12:22 | 3556463 Atticus Finch
Atticus Finch's picture

He sounds like a 1930s -1940s news announcer.

Mon, 05/13/2013 - 12:25 | 3556431 OneTinSoldier66
OneTinSoldier66's picture

I gave this thing a rating of 1.

 

He says that Gold is in a bear market. I know what an ounce of Gold is. But with QEInfinity, I do not know what a dollar, nor a US Treasury is.

 

He didn't explain what Gold is and how people go about getting it. Hint: it doesn't just pop up out of thin air or with some computer keystrokes, like the unbacked iredeemable dollar does these days(since 1971?).

He didn't explain what a dollar is and where it comes from or how it is created. "Treasuries" pay in "dollars".

He didn't explain why it was a mistake to use Gold in Silver as money in the past. Perhaps he doesn't know any history at all?

 

It's as if because he says that Gold is in a bear market, it is. All he needed to do was say that Gold is in a bear market, and that makes it so. Pfffft.

 

"Gold is in it's own bear market and it remains broken both fundamentally and technically." Did he even give us any "fundamental" reason for why he believes Gold is in a bear market? Because the US Treasury yield has risen lately? Is that a fundamental reason, or techincal?

Mon, 05/13/2013 - 16:38 | 3556689 Quinvarius
Quinvarius's picture

Gold is far from a bear market, technically or otherwise.

And to be perfectly honest, only a complete noob would say an imploding debt market is a negative for gold.  Even in 1980, gold ran all the way up until it backed the currency supply 100% as US debt cratered.  Rising rates mean the inflationary reservoir known as bonds is springing a leak.  There are really no examples of sovereign debt issues that made a currency stronger.  They usually end up in hyperinflation.  BUt when you go around calling history and math buffs "goldbugs" you probably aren't paying much attention to reality anyway.

Mon, 05/13/2013 - 13:00 | 3556629 Creepy Lurker
Creepy Lurker's picture

These technical guys wear huge blinders. If it's not part of thier charts, it doesn't exist as far as they're concerned. No doubt this guy has some convoluted idea of what 'fundementals' are, that's based on a set of charts of his own devising.

Mon, 05/13/2013 - 11:37 | 3556299 LawsofPhysics
LawsofPhysics's picture

when it comes to debt, you either i) restructure the debt (default or otherwise), fund the debt (find more suckers or actually grow), or ii) reduce the unfunded liabilities.  Of course a currency collapse (chaos) changes everything.  I still see a world awash in paper fucking promises with relatively few assets or collateral of real value.

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