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What's The Most Important Word In The Global Financial Markets?

Tyler Durden's picture




 

While the world is vigorously searching for what Fed "Tapering" means, it seems the professionals in the financial markets are just as intrigued. With equity bulls yelling "buy" and bond bulls screaming "bye", it seems the story count within Bloomberg for the word "taper" is as close a proxy for bond market volatility as anything else we can find.

 

 

and JGB vol is just a closely synced.

Charts: Bloomberg

 

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Tue, 05/28/2013 - 21:22 | 3605863 mjorden
mjorden's picture

Alex: The answer is 'what happens when QE never ends!?'

- Did I win, Alex? Did I win?

Tue, 05/28/2013 - 21:32 | 3605896 surf0766
surf0766's picture

No it said word not words. Now eat your peas and hand over 75% tax.

 

 

Wed, 05/29/2013 - 02:46 | 3606505 Doña K
Doña K's picture

Be careful of unintended consequence: "The volume was low and then it tapered off."

Tue, 05/28/2013 - 21:23 | 3605865 realtick
realtick's picture

rhymes with "paper"

interesting - wonder what that means?

Tue, 05/28/2013 - 23:27 | 3606265 Raynja
Raynja's picture

its like combining toilet and paper

Tue, 05/28/2013 - 21:24 | 3605871 Dr. Engali
Dr. Engali's picture

Taper bitchez!

Tue, 05/28/2013 - 21:27 | 3605883 surf0766
surf0766's picture

Confiscation ?

Tue, 05/28/2013 - 21:29 | 3605891 Schlomo Bergstein
Schlomo Bergstein's picture

Judging by your chart it looks like we've reach PeakTaper. Yields can only go down from here.

Tue, 05/28/2013 - 21:32 | 3605898 fonzannoon
fonzannoon's picture

It's true that everytime we touch 2.25% you can pretty much ride the wave back down to the 1.6% area.

The Yen was not blowing up at those times though.

Tue, 05/28/2013 - 21:37 | 3605909 Dr. Engali
Dr. Engali's picture

It will be interesting to see if the Bernank can get this under control. My guess is in the next few days we will get some fear in the markets to drive yields back under 2%.

Tue, 05/28/2013 - 21:40 | 3605926 fonzannoon
fonzannoon's picture

I am with you although after everything that has gone on I fail to see what can scare equities...Let's say the NFP is a disaster...then forget the taper...that is bullish.

Maybe, at this point, the only way to get money out of equities is to drive yields higher? Get them up close to 3% and then a ton of people cash in their stocks to lock in what they consider to be a great yield?

Tue, 05/28/2013 - 21:50 | 3605956 Dr. Engali
Dr. Engali's picture

You will probably see a lot of that if yields ever get that high. I know a lot of people would go apeshit if they had the chance to lock in 3% right now.

Tue, 05/28/2013 - 21:57 | 3605968 fonzannoon
fonzannoon's picture

That would mean roughly 4% and change on the 30yr. I'd have people frothing at the mouth for that.

Shit the more I think about it the more it makes sense that they would go that route.

Tue, 05/28/2013 - 21:36 | 3605907 firstdivision
firstdivision's picture

Q: Why is shit tapered?

A: So your asshole doesn't slam shut.

Tue, 05/28/2013 - 21:38 | 3605914 Dr. Engali
Dr. Engali's picture

Drink more beer and you won't have to worry about that problem.

Tue, 05/28/2013 - 21:47 | 3605947 Eahudimac
Eahudimac's picture

Now that's funny!

Tue, 05/28/2013 - 21:38 | 3605913 Atomizer
Atomizer's picture

Rare earth investments are today’s internet boom/bust cycle business structure. These fuck knobs operate off a compressed group who advertise wealth towards the foot soldier workers. Some are holding back new technologies to physically watch crony monopolies riches to rags historical events unfold. Major families will need to go long on Kotex to cover up their bleeding.

Tue, 05/28/2013 - 21:44 | 3605932 Golden_Rule
Golden_Rule's picture

how about a "taper" tweet-athon tomorrow to drive the algos crazy?

Tue, 05/28/2013 - 21:45 | 3605938 espirit
espirit's picture

Most important word?

Bull(shit)

Tue, 05/28/2013 - 21:52 | 3605957 Aurora Ex Machina
Aurora Ex Machina's picture

Trust.

 

Play the music, this dance is over.

 

 

 

Oh, great, you hell-banned me. Not cool Tyler, not cool.

Tue, 05/28/2013 - 22:00 | 3605991 nmewn
nmewn's picture

Trust AND trusting that justice (not only laws) is/are carried out on a uniform basis...which it is not...now we get to the final chapter in a book we've all read before and all know the ending.

Will there be law or justice?

Tue, 05/28/2013 - 22:03 | 3605994 Aurora Ex Machina
Aurora Ex Machina's picture

Law has never been about Justice, at least since Roman times, it's always been about making sure the system functions.

 

(And I apologise for the hell-ban accusation, I'm having serious M-I-M issues atm, grump grump grump, damn MLP pixies).

Tue, 05/28/2013 - 22:11 | 3606023 nmewn
nmewn's picture

"Law has never been about Justice, at least since Roman times, it's always been about making sure the system functions."

Correct.

On the other, stay away from the Adobe popsiciles but you knew that ;-)

Tue, 05/28/2013 - 22:18 | 3606057 Stares straight...
Stares straight ahead's picture

Nope, that's just your attention getting paranoia kicking in.

Wed, 05/29/2013 - 10:34 | 3607349 Aurora Ex Machina
Aurora Ex Machina's picture

Green'd for an accurate call out.

Tue, 05/28/2013 - 21:53 | 3605966 orez65
orez65's picture

This QE tapering rumor is such bull shit.

Say that you, or your favorite hedge or pension fund, own Treasuries and that the Fed starts to taper QE.

Interest rates will then go up because there will be less demand for Treasuries which will make the price of your bond decrease, big time.

The more taper the more your bond price goes down.

Why the fuck would you not then sell your bond???

Who would want to buy your bond which will continue to decrease in value??

In the mean time the Federal Government continues to deficit spend, which means that they have to sell bonds which will decrease in value. Who the fuck is going to buy that shit?

There is no fucking way that QE  will ever end and the talk of tapering is bull shit. 

Tue, 05/28/2013 - 22:04 | 3605999 hmmmstrange
hmmmstrange's picture

FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper FED QE taper Bloomberg

Tue, 05/28/2013 - 22:48 | 3606160 bugs_
bugs_'s picture

taper is way easier to say three times real fast compared to sequester

Wed, 05/29/2013 - 00:10 | 3606353 Schmuck Raker
Schmuck Raker's picture

I'd say 'taper' is running a distant second behind "MOAR!"

Wed, 05/29/2013 - 06:57 | 3606658 Heiman Van Rock...
Heiman Van Rockerchild's picture

Tapering: we are a criminal cabal that controls the world monetary system, we can expand and contract credit(debt) at will to suit our agenda, including by not limited to destroying the wealth of the people so they will be our debt slaves, rig the markets to our advantage to make huge profits at the expense of the dumb goyim.

Wed, 05/29/2013 - 07:47 | 3606762 SAT 800
SAT 800's picture

taper; a small candle. tapering; manufacturing small candles. English is a strange language.

Wed, 05/29/2013 - 07:50 | 3606768 EclecticParrot
EclecticParrot's picture

Silly me, I always thought it was "tape her", specifically referring to Yellen's mouth.  My mistake ...

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