Update: 2.04%..... 10 Year Drops To 2.17%, Lowest Since January 2009

Tyler Durden's picture




 

But shhhh, don't anybody tell stocks they are trading about 30% higher than where they should be based on this yield.

Update: 2.04%

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Tue, 08/09/2011 - 15:04 | 1543445 Stax Edwards
Stax Edwards's picture

Deflation Bitchez...

Tue, 08/09/2011 - 15:13 | 1543470 Spitzer
Spitzer's picture

Deflation my ass !

Gold stocks are up, the XAU is up !

Tue, 08/09/2011 - 15:25 | 1543506 tmosley
tmosley's picture

Of course they are.  Gold is money.  Contrary to certain hoobajoo put out by certain voodoo economists.

Tue, 08/09/2011 - 15:06 | 1543450 Chasecran
Chasecran's picture

Michael Steinhardt and Jim Rogers are getting their faces ripped off on those long rates positions.

Tue, 08/09/2011 - 15:07 | 1543453 silvertrain
silvertrain's picture

I think rogers and his short nasdaq play more than covers it..

Tue, 08/09/2011 - 15:34 | 1543539 Spitzer
Spitzer's picture

He also thought his wheat futures would perform better then gold.  Howd that work for ya Jimmy ?

Tue, 08/09/2011 - 15:06 | 1543451 silvertrain
silvertrain's picture

wow..Citi resumes its dipping also..

Tue, 08/09/2011 - 15:07 | 1543454 WineSorbet
WineSorbet's picture

who in their right minds is buying stocks here?

Tue, 08/09/2011 - 15:10 | 1543462 HelluvaEngineer
HelluvaEngineer's picture

Cramerica

Tue, 08/09/2011 - 15:32 | 1543533 Spitzer
Spitzer's picture

Stocks have no currency risk, bonds do. That is probabaly why stocks have turned around.

Treasury bubble is getting climax buying as we speak.

Tue, 08/09/2011 - 15:09 | 1543458 irishlink
irishlink's picture

Remember dont fight the fed. older than BTFD

Tue, 08/09/2011 - 15:10 | 1543460 Hansel
Hansel's picture

This Fed statement is disgusting.

Tue, 08/09/2011 - 15:25 | 1543509 SheepDog-One
SheepDog-One's picture

The FED is disgusting, always.

Tue, 08/09/2011 - 15:11 | 1543466 John McCloy
John McCloy's picture

100 Years coming trading at -4% what a bargain. Talk to any big government American Idolite and they just say "We would be crazy not to borrow at these rates"..lol at the end of the day who cares if it is 0%..the debt is still incurred..cannot be repaid and goes into funding wars, govt pensions and overseas. What should be frightening to all who can see past tomorrow is "What happens when we cannot borrow from ourselves at these rates?"

     Then what becomes of a nation which can no longer borrow simply to keep the plates in the air. That is what frightens me.

Tue, 08/09/2011 - 15:12 | 1543469 hungarianboy
hungarianboy's picture

Here comes the bounce. Tomorrow the ECB again in the secondary market and killing the shorts.

Tue, 08/09/2011 - 15:26 | 1543510 SheepDog-One
SheepDog-One's picture

Bulls, its whats for dinner now.

Tue, 08/09/2011 - 15:24 | 1543496 Biggvs
Biggvs's picture

The 25+ year treasury futures (UB) made quite a spike too just then.

Tue, 08/09/2011 - 15:24 | 1543502 SheepDog-One
SheepDog-One's picture

LOL, chaos, bitchez.

Tue, 08/09/2011 - 15:36 | 1543546 Slap That Taco
Slap That Taco's picture

Yup, $ index going to 60 bitchez.

Who started the "bitchez" thing anyway?

Tue, 08/09/2011 - 15:36 | 1543547 FoieGras
FoieGras's picture

Gold, bonds, ammo, canned goods.

Tue, 08/09/2011 - 15:39 | 1543562 Slap That Taco
Slap That Taco's picture

...Marlboro cigarettes...Jack Daniels....

Tue, 08/09/2011 - 15:37 | 1543554 Slap That Taco
Slap That Taco's picture

So when is the 100 and 50 year Treasury bond going to start trading?

I'd say 6% for the 100 and 5.33% for the 50 sounds about right.

Tue, 08/09/2011 - 15:38 | 1543556 But then what d...
But then what do I know's picture

Well, maybe it is the other way around. Maybe this yield is 30% below where it should be.

The point being, it is all relative. There is no fair market value right now because there is no market....

Just noise. Should we avoid a systemic blow up (banks going under) all this craziness will subside sooner or later.

In case of an “Armageddon” one should be not in “instrumentilized” gold (i.e. gold ETFs, physical gold in some bank or brokerage account, gold producers, etc) but rather in real portable assets (i.e. gold jewelry, bullion, diamonds stashed somewhere safe in near proximity and easily accessible with no intermediaries to guard it). If one is still investing, they should have a portfolio (i.e. an assortment of low correlated or uncorrelated performing assets) and not a single position in gold and silver in a trading account.

Then why not look at high dividend stocks or high yield and senior loans? Cash flows backed by strong balance sheets.

Who would you rather lend your money to? To a cash rich, efficient, well run, growing global corporation or to a bankrupt, politically gridlocked, declining state that its only way of paying you back is to devalue its debt? Why not own Swiss franc apart from gold instruments?

Funny thing how “flight to safety” is perceived.

If the system does not break down, there is opportunity in pockets within every asset class right now

Tue, 08/09/2011 - 15:43 | 1543574 Slap That Taco
Slap That Taco's picture

I WOULD AGREE WITH YOU IF THERE WAS NOT SO MUCH FUCKING MANIPULATION!!!!

Sorry man, just a little annoyed.  Thinking of moving to Greenland.

Tue, 08/09/2011 - 16:22 | 1543755 But then what d...
But then what do I know's picture

Not a bad choice. I would pick something warmer. How about the Greek islands once they go back to the Drachma?

In any case, unfortunetely manipulation is now part of the game and we have to learn how to live with it

If it is not the Fed and other world governments, it is the hedge funds, or HFT or insider trading or ......

 

Tue, 08/09/2011 - 16:04 | 1543666 MajorityRules.
MajorityRules.'s picture

WELL SAID. 

Tue, 08/09/2011 - 15:41 | 1543575 exnihilo
exnihilo's picture

sounds like a compression trade

Tue, 08/09/2011 - 15:53 | 1543619 Texas Ginslinger
Texas Ginslinger's picture

Tyler, what's with the bombardment of ads pushing Goldline International's overpriced golds coins, as per Glenn  beck..

Do you endorse that ...???????

Tue, 08/09/2011 - 16:28 | 1543793 GFORCE
GFORCE's picture

"OUCH!" Jim Rogers

Tue, 08/09/2011 - 16:41 | 1543862 Grand Supercycle
Grand Supercycle's picture

Equity counter trend short covering rally begins from very oversold levels.

http://stockmarket618.wordpress.com

Tue, 08/09/2011 - 18:01 | 1544214 BW
BW's picture

OR the 10 year is out of whack.

Tue, 08/09/2011 - 23:24 | 1545123 phaesed
phaesed's picture

So 2 years later and I stand correct in my call.... do a correlation on Gold and Interest rates.... But then again, I am the madman on the corner screaming 'BUY TREASURIES'. I guess even the guy screaming the sky will be falling will be right some day... At least he'll have company.... I had none :)

Tue, 08/09/2011 - 23:27 | 1545127 phaesed
phaesed's picture

and oh yeah.... Even though it's over due for a pullback, the 5 and 10 years have broken out... why do people continue to short the 30 year bull market, I have no clue... it's still got one more year folks.

Wed, 09/14/2011 - 05:16 | 1667556 chinawholesaler
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