• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

10Y Hits 2% As Boeing Order Boost To Durable Goods Sparks Risk-On

Tyler Durden's picture


Where ever you look - apart from AAPL (-0.5%) - risk-related assets are on another tear this morning. Following the better-than-expected (though totally noisy) goods orders headlines - which a mere scratch below the surface show to be considerably less exuberant than expected, EURUSD surged back up to unchanged, 10Y Treasury yields pushed back above 2% for the first time in 9 months, and S&P 500 futures touched 1500. Bonds and stocks are modestly recoupling but not as much as one would think given the 10Y shift. Meanwhile CAT is up 2.5% on a cautious outlook and BA is down 0.6% (as driver of the macro rally?).



and for a sense of bond vs stocks - there is some narrowing of the divergence but not as much as one would expect...

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Mon, 01/28/2013 - 10:11 | 3191076 Irelevant
Irelevant's picture

Just another second on the long timeline of history...

We need MOAR money printing.


Mon, 01/28/2013 - 10:15 | 3191087 Muppet of the U...
Muppet of the Universe's picture



Because eventually, chaos becomes stability... & oddly enough, sometimes...

Complexity becomes stability in and of itself.  However, when this moment comes,

it will represent a paradigm shift in global consciousness, and I do not think we are entirely there yet.

Mon, 01/28/2013 - 10:22 | 3191107 TerminalDebt
TerminalDebt's picture

Isreal says US planning Iran strike, sell bonds buy missile makers.


Mon, 01/28/2013 - 10:45 | 3191178 Irelevant
Irelevant's picture

20 pounds of silver in each one ....

Mon, 01/28/2013 - 11:30 | 3191322 TerminalDebt
TerminalDebt's picture

Ben and his minnions were probably partying with Timmah on Friday and didn't get a chance to secretly buy their usual 3B worth.

They'll fix up the yield today

Mon, 01/28/2013 - 11:55 | 3191435 trav777
trav777's picture

oh no, Boeing got more orders, 787s sell, Tyler Durden suicidal that the sky hasn't fallen.

BA has a 7 year sellout on some models, and a 3400 plane backlog.

Mon, 01/28/2013 - 10:16 | 3191091 Rainman
Rainman's picture

50 billion fiatscos of hurricane porkulus hitting the streets for starters....BTFD if there ever is a dip again !

Mon, 01/28/2013 - 10:20 | 3191102 chubbar
chubbar's picture

anyone insured with GEICO needs to cancel their policy with these fuckers.

An SD reader has sent us his notification of cancellation of auto insurance from GEICO effective 1/22/13 due to the fact that ”the vehicle does not meet our underwriting guidelines because it is used in conjunction with a company that deals in the weapons industry”.

First Bank of America began confiscating the funds of firearms dealers, now GEICO believes it can cancel service for anyone working in the firearms industry. Who needs gun bans when the the banksters are more than willing to do the dirty work and pull strong armed corruption Chicago style stunts?

Submitted GEICO (Government Employees Insurance Company) notice of cancellation of insurance letter is below:


Mon, 01/28/2013 - 10:24 | 3191117 TideFighter
TideFighter's picture

You need to mark that out a little better, in short, everything you blacked out is visable.

Mon, 01/28/2013 - 10:26 | 3191129 SheepDog-One
SheepDog-One's picture

Yep, looks like the banks/insurance companies....really the same damn thing anyway, are just taking it upon themselves to disarm people. I heard BofA won't honor any gun/ammo purchase transactions now.

Best solution all along has been to remove money from these institutions.

Mon, 01/28/2013 - 13:59 | 3191912 walküre
walküre's picture

Brilliant move by the banks. They're so predictably stupid, it's not even amusing anymore.

Guns/ammo are pretty much the only thing that has been best selling last year. Now the transactions need to be handled in cash, off the books and under the table.

Fucking A! Speeding up the collapse of the vultures.

Mon, 01/28/2013 - 11:42 | 3191365 CaptainSpaulding
CaptainSpaulding's picture

Geico, Isn't that the company with that Flo woman?

Mon, 01/28/2013 - 13:42 | 3191818 Pegasus Muse
Pegasus Muse's picture

If you're eligible, go with USAA (United States Automobile Association).


Best insurance company bar none.  Started by former army officers for military families.

No Geckos.  No ducks.  No stupid advertising BS.  Quality service; resonable premiums. 

Mon, 01/28/2013 - 10:16 | 3191077 fonzannoon
fonzannoon's picture

Is the ten year not repeating last years move? Where did we get...2.25% before we went straight back down?

Mon, 01/28/2013 - 10:11 | 3191078 Cursive
Cursive's picture

Any old excuse to ramp it.

Mon, 01/28/2013 - 10:13 | 3191079 buzzsaw99
buzzsaw99's picture

10y = screaming buy imo.

Mon, 01/28/2013 - 10:29 | 3191138 Water Is Wet
Water Is Wet's picture

Well get on it then.

Mon, 01/28/2013 - 10:14 | 3191085 LongSoupLine
LongSoupLine's picture

NY Times says buy stocks...the fucking top is in.

Fuck you Bernanke and all your PD fucking ass licks that are pumping this whore fucking pig.

Mon, 01/28/2013 - 10:17 | 3191093 azengrcat
azengrcat's picture

Full QEtard!

Mon, 01/28/2013 - 10:20 | 3191099 LawsofPhysics
LawsofPhysics's picture

The capital mis-allocation, mal-investment, and mis-pricing continues...

Mon, 01/28/2013 - 10:23 | 3191108 Eireann go Brach
Eireann go Brach's picture

The sheep will be led to slaughter, or will they remember the scars from 2008 and 50% losses?

Mon, 01/28/2013 - 10:22 | 3191110 SheepDog-One
SheepDog-One's picture

It was promised that 'Post election' we would see the 'reality' come crashing back in....that whole past years worth of analysis from every anal-cyst that 'it's all for the elections' couldn't have been any more worthless as post election only marked the start of the real overdrive pumpfest.

Mon, 01/28/2013 - 10:25 | 3191118 yrbmegr
yrbmegr's picture

I thought they were MODEL airplanes.  Oops!  Need to cancel my 50-plane order.  World economy reversed.

Mon, 01/28/2013 - 10:27 | 3191133 SheepDog-One
SheepDog-One's picture


Mon, 01/28/2013 - 10:28 | 3191136 mayhem_korner
mayhem_korner's picture



Is Boeing back in the business of making durable things?

Mon, 01/28/2013 - 10:28 | 3191137 yogibear
yogibear's picture

To control the masses more drones are needed for the US.

Mon, 01/28/2013 - 10:32 | 3191144 WhiteNight123129
WhiteNight123129's picture

SHort Treasuries long gold and commodities bitchez!

WHen the curve gets really steep, you will have a good old stagflationary recovery with 80% of the nominal GDP due to inflation. Sweet...

US is taking a page from ARgentinian economics....


Mon, 01/28/2013 - 10:38 | 3191159 LawsofPhysics
LawsofPhysics's picture

This is not the 70's.  Rates cannot rise and the Fed knows it.

Mon, 01/28/2013 - 10:59 | 3191218 WhiteNight123129
WhiteNight123129's picture

It is the 70s in emerging markets. Very high inflation and very high nominal long bond yield always go hand in hand.
Money printing will stop because idle monied capital get spent. (idle dumb money was in money markets)
80% of nominal GDP growth will be inflation.
Argentina has had a beautiful deleveraging with massive nominal gains in stocks (2 + 20 yummy!!). Ok its economy in real terms suck but who in Washington, hedge funds and the Fed cares?

Mon, 01/28/2013 - 11:56 | 3191376 LawsofPhysics
LawsofPhysics's picture

The energy sector (required to actually do anything) made many discoveries in the 70's that benefitted both emerging markets and pulled the real economy out of the gutter.  This will not happen this time around, hedge accordingly, as war it is the only option to maintaining a decent standard for living for some people (not possible for 7+ billion).

You say; "Money printing will stop because idle monied capital get spent."   LMFAO!!!  Yeah, money printing has stopped, too fucking funny.  What you are wittnessing now is the divergence of physical markets and paper markets. Turn as much of those paper profits into real assets as fast as you can.  We also reasied rates in the 70's.  Go ahead raise rates now, I dare you.  America will default as it would not be able to pay the interest on the debt let alone fund any of the future liabilities.

Mon, 01/28/2013 - 13:43 | 3191843 trav777
trav777's picture

Don't be so pessimistic man...you just worship BALE

We have moar nuclear power coming and we're easily smart enough to run that right.  We have diversity now and diversity solves everything.  If we throw enough diversity at plant construction and operation, it will solve itself.

Kurzweil said just think of all those MINDS coming online in the next few years, all those MINDS all over the planet about to get onto the internet.  He said this at TED which means it's real yo.  All those 3rd world MINDS are out there going to combine forces to invent stuff man, cool stuff.  Because it is always vast collections of the fat part of the bell curve that invents things like, calculus or the transistor or something.  MINDS on the internet.  Tons of MINDS.

My personal experience is that you can put 100 ordinary people in a room and give them a reasonably difficult logic or math problem and the lot of them cannot solve it whereas only one genius can, but I am not on TED, so my argument is invalid!!1

Mon, 01/28/2013 - 18:43 | 3192894 WhiteNight123129
WhiteNight123129's picture

Who said the Fed would raise rates, they will let the curve get really steep that will push idle money falling off its bed. FED will do nothing to stop inflation and precent the curve to steepen further. Soros was pointing to substantial inflation risk as monied capital was starting to go into circulation, he said the FED should raise quickly, however Bernanke is obsessed with 1938 policy mistake. First Fed removes printing, Gold sells off a lot but then we have an Argentinian shitty nominal GDP increase, inflation becomes obvious to everyone, Gold goes into mania.
Inflation is in no way hampered by high debt. HISTORY actually shows that low level of levedava is associated with stronger currency.

Mon, 01/28/2013 - 10:41 | 3191170 SheepDog-One
SheepDog-One's picture

Who has the money to pay for inflation? This isn't Weimar Germany you know, when the people actually HAD wheelbarrows full of cash.

Mon, 01/28/2013 - 18:50 | 3192910 WhiteNight123129
WhiteNight123129's picture

Remember the 1% and corporations, they have mocked the red necks, but just like Kito they are getting creamed because of their Love for the dowler. They are moving in other fuinha AND circulation.

Mon, 01/28/2013 - 10:38 | 3191160 LukeWorm
LukeWorm's picture

Boeing orders? How durable is that?

Mon, 01/28/2013 - 11:01 | 3191221 eclectic syncretist
eclectic syncretist's picture

CNBC's best analysts on Boeing.



Mon, 01/28/2013 - 12:00 | 3191450 trav777
trav777's picture

why is it that people here are such misanthropes?  Are you all so empty inside that you just want to see everything burn and everyone suffer?  Get help, jfc.

Mon, 01/28/2013 - 10:57 | 3191214 eclectic syncretist
eclectic syncretist's picture

With the S&P500 holding at a relative strength of 80+ for over a week now one has to wonder WTF?  How long can that last?

Mon, 01/28/2013 - 14:07 | 3191942 walküre
walküre's picture

The Fed manipulates everything. The member banks of the Fed are sanitizied. Their fraud has been cleansed and their balance sheets repaired with tax payers money. The banks have a deposit surplus on their balance sheets which in fact is not their money. None of it is theirs. Remember who owns the banks. The owners now want to pull the second coup d'etat and earn more on these deposits from all the slaves running America and the rest of the world.

Fuck 'em. If they raise rates because they think they can get away with it, the mass default and blow-up of all the debt will happen.

Keep stacking and boating.

Mon, 01/28/2013 - 14:11 | 3191947 Dubaibanker
Dubaibanker's picture

<---------- Anyone who thinks bond bubble is bursting and 10year is gonna rise further, vote here.

<---------- Anyone who thinks bond bubble is not bursting and 10year yield is going to stay lower and go lower as in Switzerland or Germany on the 2 year yield for pure safety reasons, vote here.



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