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Treasury Yields Spike To New 14 Month Highs

Tyler Durden's picture




 

30Y rates are up 4bps and 10Y rates up 5bps as a combination of MBS convexity hedging, Taper chatter, and growth hopiness flutter across the bond market. This has backed 10Y and 30Y rates up to their highest since April 2012 - getting close to some significant support/resistance from the last few years. Mortgage spreads have stabilized up here at their highest since July (around 83bps) but just as a delicate reminder, the last time bond yields spiked to this degree, equities began to wonder just what was going on? With so much of the investing public having bought bond-like-stocks at the behest of every talking head and asset-gatherer under-the-sun, we wonder at what point do the arguments about a great rotation from bonds to stocks (since gosh, 10Y bond prices are down 3% in the last month) turn to a rotation from bond-like-stocks to bond-like-bonds...

 

 

Or more simply, the market's (or the Fed's) realization that 'normalizing' rates here will crush the economy as interest expense surges (think Japan...)

Charts: Bloomberg

 

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Mon, 06/10/2013 - 12:35 | 3642500 firstdivision
firstdivision's picture

Fire Sale!

Mon, 06/10/2013 - 12:48 | 3642538 Headbanger
Headbanger's picture

And 10 year now up to 2.23%

http://www.marketwatch.com/investing/bond/10_year

 

Mon, 06/10/2013 - 12:51 | 3642557 Pinto Currency
Pinto Currency's picture

 

As bond yields continue to rise, the question is why anyone would invest in a continually declining asset class.

Mon, 06/10/2013 - 13:01 | 3642599 HulkHogan
HulkHogan's picture

You mean like Gold? ... Silver?

Mon, 06/10/2013 - 13:59 | 3642853 Pinto Currency
Pinto Currency's picture

 

There is a difference between an asset declining due to fundamentals and one that is manipulated down through the futures market.

There are physical gold and silver shortages worldwide due to market demand yet the price is repeatedly slammed by the futures market.

Let's see how much market demand (not c.b. demand) there is for bonds as yields continue to rise.

Mon, 06/10/2013 - 14:04 | 3642869 Snoopy the Economist
Snoopy the Economist's picture

Pinto,

Could you tell us which assets are currently not being manipulated?

Mon, 06/10/2013 - 15:00 | 3643137 Pinto Currency
Pinto Currency's picture

 

Point is manipulations always fail.

Bonds are being manipulated up in price.

Gold and silver are being manipulated down in price.

With a long-term view, invest in the ones that go up when this manipulation inevitably fails.

You can play in the others.

Mon, 06/10/2013 - 13:59 | 3642854 LawsofPhysics
LawsofPhysics's picture

Just checked.  All the ounces are still there and the purchasing power is as strong as ever. 

 

I never seem to have trouble turning it into a lot of the "fiat du jour" either, I wonder why...

Mon, 06/10/2013 - 13:05 | 3642610 Sudden Debt
Sudden Debt's picture

lack of assets. one could buy gold but they need so manny assets to cover the books that even all the gold in the world doesn't cut it.
That's why they hate gold. if one bank would do it, it would force others to do the same and that would be a dance for chairs.

and only governments can offer it by putting their citizens for sale to let the banks buy those assets.

YOU SIR.... ARE 0,00000000112% OF A ASSET WHICH PAYS FOR A BANKERS BONUS.

Mon, 06/10/2013 - 13:38 | 3642614 TruthInSunshine
TruthInSunshine's picture

Either/Or

 

"When you come to the fork in the road, take it."

- Ben "Yogi" Bernankeocletian

 

p.s. - It's actually a fun exercise to try and pin precise yields on  treasury notes AND bonds that would concern ***cough***-warrant aggressive intervention-***cough*** Commodus Bernankioletian.

Mon, 06/10/2013 - 13:39 | 3642771 Bay of Pigs
Bay of Pigs's picture

Yo, look who's back!

Peace and Aloha brah.

Mon, 06/10/2013 - 13:46 | 3642802 TruthInSunshine
TruthInSunshine's picture

Likewise,BoP.

Mon, 06/10/2013 - 12:54 | 3642564 maskone909
maskone909's picture

ok its on and crackin

my guess is that this week if not by the EOD we will get an announcement that the fed is going to buy more treasuries.  black swan time

Mon, 06/10/2013 - 13:14 | 3642662 Droel
Droel's picture

I agree. Fed needs to protect bonds or the shtf.

Mon, 06/10/2013 - 13:57 | 3642847 MachoMan
MachoMan's picture

Inconsistent...  If the FED has the ability to control the yield, then it can do so by virtue of purchases (direct/indirect) or through refraining from the same.  In short, either the market exists or it doesn't...  The fact that the FED would play up tapering and disseminate this through the usual MSM channels should tell you all you need to know.  There are a myriad of reasons for doing so, but the simplest is maintenance of the diminishing returns of monetary policy...  in this case, that means ripping the face off some of the front runners (those in the club getting the heads up of course).

Mon, 06/10/2013 - 21:02 | 3644430 Urban Redneck
Urban Redneck's picture

But there isn't ANY volume at the long end of the curve that they can buy up (and thereby drive down the yield) without changing their policy.  

Mon, 06/10/2013 - 14:39 | 3643059 PiltdownMan
Mon, 06/10/2013 - 12:36 | 3642501 LawsofPhysics
LawsofPhysics's picture

Tick tock motherfuckers...

Best guess, 2.25 on the ten year and shit gets ugly.   Thoughts?   Any bond traders out there?  

Mon, 06/10/2013 - 12:40 | 3642511 ekm
ekm's picture

I don't think it's bond yield per se that matter or even debt service.

 

It's about all interest rate derivatives linked to low yields, IMO

Mon, 06/10/2013 - 12:51 | 3642556 philosophers bone
philosophers bone's picture

I still say interest rates can't go parabolic until the Fed not only stops buying, but divests.

So how do they do that?  My guess:

1.  Europe implodes / stock market meltdown drives US bond yields negative and bond values through the roof;

2.  Fed and US government announced "Patriot Investment Program" whereby all pension plans / 401K's are required to invest a minimum amount of their portfolio in new 100 year 3.50% bonds to ensure "adequate" returns.

3.  Proceeds from new bond issue pays off the Fed (ie. the QE "exit");

4.  Hyperinflation;

5.  Fed announces new QE

Mon, 06/10/2013 - 12:59 | 3642578 ekm
ekm's picture

Possible.

However, as to forcing people to buy bonds with their savings, do not forget that there are about 300 million guns in USA, but almost none in Europe.

 

Politicians and Fed members care about their lives, for sure.

An angry mob always and at any times wants blood.

Mon, 06/10/2013 - 13:03 | 3642613 fonzannoon
fonzannoon's picture

many financial products have been designed to automatically buy treasuries if something ever causes stawks to drop. If that fails we see they locked the money market doors. 

They know what's coming.

Mon, 06/10/2013 - 13:04 | 3642619 ekm
ekm's picture

Wow, wow, wow. I did not know that.

Thx a lot.

Mon, 06/10/2013 - 13:09 | 3642643 ekm
ekm's picture

So, what happens if there is shortage of treasuries?

Do they AUTOMATICALLY sell stocks?

Mon, 06/10/2013 - 13:06 | 3642635 ParkAveFlasher
ParkAveFlasher's picture

The cheats and moochers fear the guns, yes, but they fear the Galts more. 

Mon, 06/10/2013 - 13:31 | 3642739 youngman
youngman's picture

They will have the IRS enforce it..just like Obamacare...

Mon, 06/10/2013 - 13:36 | 3642754 bank guy in Brussels
bank guy in Brussels's picture

Total bullshite claiming there 'almost no' guns in Europe

Why do Americans believe such nonsense ? Does it come with the other lie that the USA is a 'free' country ?

Try something like 100 million privately owned handguns, shotguns and rifles in Europe

---

And besides our guns, we are much better than Americans at demonstrations, riots, civil disobedience, strikes and general strikes, and bringing down governments

We do not have giant American-style prison gulags making people afraid. Almost no one is in jail here. There is little fear of malicious arrests, courts, judges or lawyers

USA jails 1 out of 140 ... in Continental Europe it is 1 out of 1000

So Europeans hit the streets ... Americans stay at home and vent on the internet but otherwise pretty much cower in fear of being arrested and jailed for endless years in the slave-labour gulag with the other 2.3 million American prisoners

---

Americans are rolling over and allowing gun confiscation when the cops come (Katrina, Boston) ... guns are a LAST RESORT, you pull a gun in the US and you are facing DEATH or JAIL UNTIL YOU ARE OLD, and so far there seems little evidence Americans are brave enough to use those guns

---

We have shooting clubs here in Brussels, where people like myself enjoy shooting .45 pistols etc. - Great American gun designer John Browning died in Belgium, while working on manufacturing guns here

In our little Belgium: 2 million civilian privately owned handguns, shotguns, rifles

Germany has 25 million civilian privately owned handguns, shotguns, rifles

France: 19 million civilian privately owned handguns, shotguns, rifles ... And so on.

We do not carry them around, or have as high gun ownership rates as in the US, but we have enough.

Yes, the crazy UK Brits confiscated all privately owned handguns in the 1990s - But they are extremists, suffering from the Anglo-American over-legalism disease.

It is not like that on the Continent. Here we know the Nazis can come back, older people here still remember the last time the Nazis were occupying when they were children

Facts of gun ownership and policies in countries around the world:
http://www.gunpolicy.org/

Mon, 06/10/2013 - 14:03 | 3642863 gatorengineer
gatorengineer's picture

statistics US over 400 million guns, or 1 gun per person... europe 1 gun for every 5 people.  drastically less.

Pull a gun in the US and you are facing death or Jail.... I assume you just missed the SARC tag....?

In Europe you dont have the minority issues we have, as you are afraid to lock up the fellows from North Africa, for fear of offending them.  Other than that a few gypsy's Adolf missed you have no issue other than domestic trash which we also have.

Now compare the dole per person in europe to that in America and you will find out how you have bought peace.  When the bennies run out on either side of the ocean, you will see why gun ownership is so high here, and why the English want their guns back...

 

 

Mon, 06/10/2013 - 14:10 | 3642899 MachoMan
MachoMan's picture

And besides our guns, we are much better than Americans at demonstrations, riots, civil disobedience, strikes and general strikes, and bringing down governments.

I think you have more frequent, escalated riots/protests...  but I'm not sure they're any more successful than sitting at home watching reality tv.

We do not have giant American-style prison gulags making people afraid. Almost no one is in jail here. There is little fear of malicious arrests, courts, judges or lawyers.  USA jails 1 out of 140 ... in Continental Europe it is 1 out of 1000.  So Europeans hit the streets ... Americans stay at home and vent on the internet but otherwise pretty much cower in fear of being arrested and jailed for endless years in the slave-labour gulag with the other 2.3 million American prisoners.

Well...  you have to read between the lines on the U.S. prison industry...  you can't say EVERYONE is in fear of jail...  you clearly don't understand its purpose.  Let me fill you in a bit...  the largest swath of the prison population are persons who were otherwise wards of the state...  You have to think of it as an extension of the welfare program...  It's nothing more than keeping poor people on a treadmill and out of the hair and out of sight of the middle class and to ensure that there is no upward socioeconomic mobility.  No alarms, no surpises.  Do you think J6P, wage earner, working class guy is really scared of going to prison?  Not so much...

PS, before you get too indignant talking about all the european old timers that remember ww2...  don't forget the ones on this side of the pond that have every bit as good of a memory.  (you're welcome btw).

Mon, 06/10/2013 - 13:07 | 3642631 RSloane
RSloane's picture

Last week Fonz provided information and a link that showed some 401K's are already subject to that demand. Its being done already.

 

EDIT NM there's Fonz.

Mon, 06/10/2013 - 12:45 | 3642531 HelluvaEngineer
HelluvaEngineer's picture

Bring it, Bernanke, you fucker.  You're running out of shit to buy!

Mon, 06/10/2013 - 14:05 | 3642871 gatorengineer
gatorengineer's picture

Check mortgage rates, 10 year runs half a percent and mortgages dont move.... xplain that one.......

Mon, 06/10/2013 - 12:46 | 3642533 Dr. Venkman
Dr. Venkman's picture

Well then, LoP. . .it appears we will find out in short order. It appears we have been in a rush to get there over the last 3 weeks. I do not know enough to venture a guess why.

Mon, 06/10/2013 - 12:53 | 3642563 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Any entity (government, bank, corporation, partnership, individual) that requires a sustained sub-2% 10-year UST to survive is effectively worthless.

Mon, 06/10/2013 - 12:58 | 3642582 SheepDog-One
SheepDog-One's picture

I was thinking 2.30 and shit hits the fan, but in this new normal almost anything can happen and it's no big deal.

No, I don't know any bawnd traders myself.

Mon, 06/10/2013 - 14:13 | 3642907 MachoMan
MachoMan's picture

I've heard 2.4 is the magic number...  not my bag though.

Mon, 06/10/2013 - 13:05 | 3642597 WhiteNight123129
WhiteNight123129's picture

The classical writing are great in this respect.

Actually, rising long bond rates (not short term which are a different thing) mean higher cost for rent, for leases, which has passed through into the real economy. At the same time the curve goes not more flatter but steeper, the guys shorting the bond market are kicking the idle cash out of bed by making the curve steeper.

As long as the curve gets flatter and flatter you get stuck in debt overhang (Japan), but if the bond rates go to extreme low and then are pushed up higher through a variety of means, i.e. excessive printing, jawboning and other psychological phenomena, you invert the preference for cash and bonds versus anything else (any stuff like Dalio says), you make rents and leases more expensive and that is passed into the real economy,.

So the shock on the long bond is what was necessary to kickstart inflation. Bonds right now have positive rates but the impact of the rate shock is to move cash out of idlness...

NOw the funny thing is that this shock initially looks a bit deflationary as it makes the bonds yield higher, this is what happened in Japan with teh spike at 1%, but that is transitory. That second round effect abates are more money moves out of idless. (I am not currency generally, which can be backed by either credit or base money, I am talking about the base money increasing backing deposits -- excess reserves --). So people sell their bonds and spend their currency deposits which is backed by base money, which equivalent to base money moving in the circulation.

So what follows say in 18 months is the beginning of stagflation.

 

Mon, 06/10/2013 - 13:09 | 3642642 maskone909
maskone909's picture

always enjoy your posts.  what do you think goes first, USA or Japan?  still shorting bonds through ETF's? 

Mon, 06/10/2013 - 13:11 | 3642650 ParkAveFlasher
ParkAveFlasher's picture

I don't see how you tie bonds to rents.  Would you kindly extend your thesis to describe that part further?

Mon, 06/10/2013 - 13:23 | 3642704 TruthInSunshine
TruthInSunshine's picture

Regardless, there's no escaping the liquidity trap (we now have a global, coordinated tsunami of liquidity that's created a liquidity black hole).

None other than the number 1 post-neo-Keynes revisionist, Paul "MoarAlwaysMoar" Krugman, actually expressly conceded this in one of his latest "opinion" pieces, when he stated that just because asinine & untested monetary policy hasn't and isn't working to defeat the liquity black hole doesn't mean MOAR of it shouldn't be applied.

What he won't admit in between his smarmy emails to Joe Wieselthal (whereby he laughs at the plebes and his cult-of-personality/Jonestown-like followers in stating he doesn't understand why billionaires are complaining about Bernanke's E-Z fiat policies that are further enrichening them at the expense of the vast majority of the world's citizens) is that MOAR of the MOAR he has and always will advocate (i.e. print credit/debt instruments with reckless abandon and with breakneck acceleration) feeds the liquidity black hole.

Mon, 06/10/2013 - 13:25 | 3642713 maskone909
maskone909's picture

i believe you are referring to the "Minsky Singularity".

Mon, 06/10/2013 - 13:14 | 3642663 walküre
walküre's picture

So people sell their bonds and spend their currency deposits

What are people with such holdings spending it on? Are they consuming more or just forced to spend more in order to maintain? Isn't it commonly known that the money just goes from one asset class into another asset class especially in this non-growth environment? Who has a desire to spend, invest and consume when the paycheques could stop coming as early as tomorrow?

Mon, 06/10/2013 - 13:26 | 3642718 ekm
ekm's picture

Agree

Mon, 06/10/2013 - 15:02 | 3643149 gatorengineer
gatorengineer's picture

Ammunition

Mon, 06/10/2013 - 13:19 | 3642690 kito
kito's picture

hey whitenight, you did call it.............kudos to you..................

Mon, 06/10/2013 - 13:25 | 3642711 ekm
ekm's picture

What if people do not spend the currency?

 

Do you think they are spending the currency?

Mon, 06/10/2013 - 14:11 | 3642904 gatorengineer
gatorengineer's picture

what follows is the beginning of stagflation.... is this post 3 years old?  just because they have junked the market basket doesnt mean we dont have stagflation now....

 

Also you are backwards on bonds creating inflation.  Higher bond means the cost of money is supposed to rise to the public, it hasnt yet.  When mortgages rise the bottom will drop out of housing again.....  it actually will trigger a deflationary spiral not an inflationary one.  The assumption you are making that the number of people who will carry a 30 yr note at 4% versus 3%, that is a 33% increase in the monthly nut..... Absurd.  The price of housing will simply collapse to match the monthly payment....  Some folks got in under ARMs and all of those folks will backfloat........

 

 

 

 

Mon, 06/10/2013 - 19:37 | 3644156 Not My Real Name
Not My Real Name's picture

A minor nit: The increase from 3% to 4% wouldn't result in a 33% increase to the entire monthly nut -- it would be significantly less because the increase only affects the interest portion of the payment. Still, I agree that the housing market's house of cards is extremely dependent on low interest rates.

Mon, 06/10/2013 - 13:32 | 3642744 kito
kito's picture

laws...if the sentiment is positive for yield increases.....that its occurring because of growth..stocks.......tapering....blah...blah.......i dont see how it could be ugly.........these increases are occurring with the strict oversight of the fed.......no way this is out of their hands right now..........this isnt a yield rise due to fear....................................i see that as a big difference.......

Mon, 06/10/2013 - 14:52 | 3642781 LawsofPhysics
LawsofPhysics's picture

I see two problems;

1)  There have to be treasuries available to purchase (betting on a 50-100 year bond to be introduced)

2) The rest of the world will not allow the Fed to be the only bidder, they will drop the dollar (and already are).

 

Thanks for all the insight and comments.

Mon, 06/10/2013 - 14:29 | 3642989 CrashisOptimistic
CrashisOptimistic's picture

 

It's not a yield rise out of fear, and it's not under strict Fed control.

Reason: Because for the first time all CBs are not cooperating.  Japan is off the reservation, seeking to create $10,000 Camrys that will destroy GM.

Period.

Japan is what is driving the yield up.  It won't last.

Mon, 06/10/2013 - 14:54 | 3643111 LawsofPhysics
LawsofPhysics's picture

"Japan is what is driving the yield up.  It won't last." - good hypothesis, why won't it last?  When will it stop, so we all know how to trade it?  please expand a bit.

Mon, 06/10/2013 - 12:39 | 3642509 walküre
walküre's picture

I got a haircut on Saturday. The hair dresser asked how I'd like my sideburns "tapered".

Go figure. Tapering is actually a term often used to describe the practise of cutting hair.

There is the hidden agenda. When "tapering" starts, there will be haircuts.

FWIW

Mon, 06/10/2013 - 12:43 | 3642523 Obchelli
Obchelli's picture

But what is tapered can grow back if you have healthy hair?

No?

Mon, 06/10/2013 - 12:56 | 3642575 walküre
walküre's picture

It requires repeated tapering over the lifespan of a human being. They're always a couple steps ahead of us and will have a plan for the re-grow, trust me.

Unless they cut debt, there cannot be growth. That is what this whole exercise is about. The big debt cuts are still ahead of us. Debt cuts are not the same as debt forgiveness. The beast always wants to have her cake and eat it too.

Mon, 06/10/2013 - 12:43 | 3642524 Ol Man
Ol Man's picture

To the Moon, Alice!!!!

Mon, 06/10/2013 - 12:48 | 3642542 VanillaSkyGuy
VanillaSkyGuy's picture

Stocks will now turn mysteriously weak, driving flows back to the Ts pushing yields back down.

Mon, 06/10/2013 - 12:49 | 3642549 CrashisOptimistic
CrashisOptimistic's picture

The taper stuff is # of T bonds bought.

Why has it not occurred to people that Ben can buy fewer, but overpay for each?  That would drive yields down.

 

Mon, 06/10/2013 - 12:49 | 3642550 q99x2
q99x2's picture

FB +5% on news of supplying all user data to the people that run Al-Qaeda.

Mon, 06/10/2013 - 12:53 | 3642561 PaperBear
PaperBear's picture

From 2.75% to 3.25% which is a 20% upward move means an increase in the amount of QE has to be forthcoming.

Mon, 06/10/2013 - 13:27 | 3642723 rubearish10
rubearish10's picture

Sure and the budget deficit rises again, which is likely to occur later this year. FED knows this, so no taper and likley dovish speak next week. This means buy PM's now!

Mon, 06/10/2013 - 14:19 | 3642938 MachoMan
MachoMan's picture

That's presumptuous...  This blip up in rates is allegedly based upon the dreaded tapering jawboning...  do you need to add more QE or do you just need to explain that there will be no taper?  You're dealing with really, really complex issues that are as qualitative as quantitative...  the ability to manipulate perception can have every bit as much, if not more, impact on yields than the actual dollar outlays...   

Mon, 06/10/2013 - 14:54 | 3643113 rubearish10
rubearish10's picture

Ok genius, perception can be presumed. 

Mon, 06/10/2013 - 12:53 | 3642562 emmadavis
emmadavis's picture

This is bad news for the liberal that thinks that the printing press is the answer to all economic woes! It will surly slow the ability to tax the daylights out of the public which is where the democrats have been getting the influence for the past 75 years.

http://www.investmentcontrarians.com/recession/who-really-benefits-from-inflation-and-why-youre-not-wealthier/2315/
Mon, 06/10/2013 - 12:55 | 3642572 Dr. Engali
Dr. Engali's picture

It's all good. S&P just upgraded our outlook to stable. Rally on bitchez!

Mon, 06/10/2013 - 12:59 | 3642584 SheepDog-One
SheepDog-One's picture

Watching movie 'Runaway Train' right now, very fitting it seems.

Mon, 06/10/2013 - 13:00 | 3642591 yogibear
yogibear's picture

Through manipulation the Fed PhD's are laughing at the muppets.

Only thing that puts fear into them is the US dollar spiraling downward and crashing.

Mon, 06/10/2013 - 13:00 | 3642594 fonzannoon
fonzannoon's picture

I still think we can go higher. Maybe up to 2.75% on the 10yr. As long as very short term yields stay low this is not an issue of the U.S financing it's debt. 

The best part is if rates are that high in august while bernanke is at his nephew's tball game during jackson hole.

something nasty is going to come along and send us all running back to treasuries, and it will be nasty.

Mon, 06/10/2013 - 13:12 | 3642651 SheepDog-One
SheepDog-One's picture

Well, I'll never buy a treasury and I don't know anyone who does own bonds so that part is just them flailing their arms to me. They're going to panic people into stowks, then back into bawnds, then stawks again....ok whatever.

Mon, 06/10/2013 - 13:19 | 3642692 walküre
walküre's picture

the mattress looks pretty good to me

Mon, 06/10/2013 - 13:26 | 3642719 ParkAveFlasher
ParkAveFlasher's picture

Does anyone know what will likely happen if the entire nation of France suddenly sunk by 1000 meters compared to its neighbors?

Mon, 06/10/2013 - 13:31 | 3642737 rubearish10
rubearish10's picture

Remember the FED has duration risk which puts capital account at risk should long rates rise that much more. Perhaps they'll do Operation Reverse TWIST, flatten the curve and Japan for 20!

Mon, 06/10/2013 - 13:31 | 3642738 rubearish10
rubearish10's picture

OOOOPS!

Mon, 06/10/2013 - 13:53 | 3642831 madbraz
madbraz's picture

You would have to be real foolish to buy or hold stocks at a dividend yield of 2% when 10yr gov bonds pay 2.75%.    Much like when bonds paid 10% some 30 years ago.

 

Doubtful they ever get there, as the repricing of everything in the interest rate spectrum (here and abroad) would cause massive losses that would force players to put up more collateral - and we all know that treasuries are the king of collateral.  The Fed would have to be way to stupid and would look way to stupid - remember that they tried to con us all on the chief benefit of QE being more affordable housing.  A double whammy of higher housing prices and higher mortgage interest would cause even more damage to the horrendous reputation of the Fed...they need to keep the impression that they are doing the "right" thing.

 

Much more likely that a top has been put in place for equities and risk in general.  You can't have risk assets above or close to 2 standard deviations from their 2 year average when there is no growth to be had worldwide. Emerging markets are tanking.  Copper wants to break down.  

Mon, 06/10/2013 - 13:29 | 3642726 Son of Loki
Son of Loki's picture

If the housing market is stalling (and prices dropping) at 4.25% mortgage rates (that is, 4.25% for the tip top prime people...other Plebians in the 5.5% to 7.5% or higher ranges), just wait until mortgage rates soar to 6% (or higher).

Mon, 06/10/2013 - 14:02 | 3642862 lolmao500
lolmao500's picture

Call me when it reaches 6-7%...

Mon, 06/10/2013 - 14:05 | 3642875 pragmatic hobo
pragmatic hobo's picture

BTFD

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