Meanwhile The 10 Year...

Tyler Durden's picture

Is headed for the moon... in yield terms that is. Because if Bernanke's hope was that the handoff from buyers to sellers would be a smooth one, he may want to conference in Kuroda and get some advice on what happens when the bond market is halted limit down.Good thing Bernanke is not a real hedge fund, or else the $35 billion intraday P&L crash (so far), and $250 billion in the past two months, may raise a few eyebrows.

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e-recep's picture

paging helicopter ben, paging helicopter ben.

disabledvet's picture

thank God no other assets are priced off that thing. Bloomberg was just telling me to buy, buy, buy because of this. that was right after saying a 25 billion dollar right down at some "gold miner thingy" was "good news and put competitive pressures on "all those others who didn't have to do that." or else!

Martial's picture

Helicopter Ben is now bladeless.

Frastric's picture

Helicopters don't have ejector seats, if they did the blades would shred the pilot! That's why you're fucked if a helicopter goes down uncontrollably.

GVB's picture

LOL, thanks for pointing that out... ;-)

kralizec's picture


Imagining Ben ejecting into the blades is pretty cool, ain't it?!  ;)

franzpick's picture

Capt'n Ben: The term for your new interest rate management procedure is 'auto-rotation'.

all-priced-in's picture

Obama hit the eject button for Ben -

SamAdams's picture

Duh, you have to turn off the blades first.... Response courtesy of Rockefeller education. 

CrashisOptimistic's picture

Some ejector seats used to eject downwards.  Useless for failures during takeoff, but entirely possible.

Dubaibanker's picture just BAILED OUT! :)

Stoploss's picture

Thanks for lowering my property taxes Ben!!

mariobar's picture

No, he ejaculated. Done.

Midasking's picture

Without coin clipping this market is a smoking hole in the ground... politically unacceptable to stop.

xtop23's picture

2.65%....... oh shit.

Training wheels are falling off Benny. 150B/mo overt QE sound about right?

Now .......... you are fucked.

GVB's picture

OMG, we're all so fucked.

SWRichmond's picture

So an almost 1% increase in interest on $16 Trillion of debt much again?

gatorengineer's picture

you realize it doesnt work that way right?  only new paper sees the higher number.  Since they mark to Unicorn any move todate is at best Transitory in nature..... CBO will never account for it in the projections, the moment they do, the real reset begins.

Housing gets vaporized, in a few months... Short term this is extremely bullish for housing as the sheeple will now panic to refi and get into that McMansion before she blows... give it three months to work through the system...

If the banks are paying attention (they arent) it might flush all of that shadow inventory onto the market, but I doubt it.


SWRichmond's picture

only new paper sees the higher number.

Muahahaha.  Yes, well, all of the existing holders of all of that paper are now motivated to change their minds, aren't they?  And markets are (allegedly) "forward-looking", aren't they?  One of the points being recurrently made by genuine free marketers is to point out what will happen when the ten year reverts to historic norms (6%).  Anyone wanna bet whether we'll see that?

trillion_dollar_deficit's picture

A 6 handle on the TNX equals the end of western civilization as we know it.

CrashisOptimistic's picture

You do realize housing is being bought with cash?  Rental property requires 20% down, and when it's a foreclosure the delays are extensive, so it's cash.  Investors are just flipping those houses back and forth to each other.  There are no end buyers.

MachoMan's picture

In short, socioeconomic classes are set...

NotApplicable's picture

Well, there's one end buyer at the end of the flipping chain. Question is, are you one of his friends? Or dead meat?

orez65's picture

"... only new paper sees the higher number"


Old paper gets hammered when the price of their "old paper" drops like a rock as interest rates go up.

It can easily turn into a bond selling panic as investors realize that increasing interest rates will make their bonds worthless, unless they can somehow hold them until maturity.

If you are in a bond fund you are fucked!

For a quantification of just how fucked you are read "justobserving's" post which I quote:

"For every 10 basis points move up in the 10 year yield results in a 1% loss in the bond.  Every 10 basis point move in the 30 year results in a 3% loss in the bond"

Meat Hammer's picture

Wasn't the crash that started the Great Depression caused in part by the Fed selling treasuries in the open market due to rising interest rates?  What happens if they try to do this again and the people buy up UST because of a good yield?  Does the government then owe its debt to the people and not the Fed?  If that were true I'm sure they'd have no problem defaulting on us because we were greedy for wanting a ROI.  

kralizec's picture

Closer to $17T now, any additional paper will add to interest and overall the whole mess gets worse.

reload's picture

Please step forward Mr Fonzanoon - the crowd are awaiting your lap of honor. Well called Sir, most did not see this coming and some will be going through the grinder very painfully indeed.

The Stock sell algos will have to unleashed big time now. Are there many shorts to buy it on the way down, or will it be the express elevator?

gatorengineer's picture

I think the call actually was 2.35 on a real taper not the threat of one....  something else is in play here, I suspect some highly leveraged stuff is blowing up.....  Some hedgies should be backfloating soon.... 

fonzannoon's picture

My exact call was 2.35% by the end of this month and 2.75% within 3-6 months.

I would love to be on here taking victory laps but there is no way I saw 2.65% right here and now. I am also too busy watching the balances on my clients bond allocation dwindle and am trying to get in touch with Bernie Madoff to find out how I can mark to unicorn on their next months statements.

RSloane's picture

You did call the pre-market bloodbath though. I bow to you Sir. I wasn't sure if it was going to play out like that.


PS Daneric's hasn't posted their call. First time that I can remember that we're approaching 9 EST and nothing yet.

fonzannoon's picture

Thanks RSloane, it looks like someone finally woke up the drunk captain and he is trying to steer the ship again. Let's see how long it lasts.

It's funny I was just listening to Cramer pitch regional bank stocks with the premise that they should continue to pay grandma no interest here and bank the spreads on the 5 year treasury. He should just have declared today "punch a grandma in the face day".

No one cares.

kill switch's picture

Hay fuckhead go to the nearest courtesy phone , you know the green one with QWERTY virtual keyboard...

Look he's picking his nose, Fifty bucks he eats it,,,,your on.. Look at the cash pouring out of that thing.

Dr. No's picture

"We've just lost cabin pressure..."

Dingleberry's picture

Seriously, does it take an expert to predict what happens to bonds when Ben stops buying them? Does one need an MBA from Wharton that costs 6 figures to discern this?

deKevelioc's picture

If Bennie doesn't step in, this could be it.  I've been waiting a loooong time for this chit, but Bennie is only playin'; he's got his hand on the wheel (I think).  The next reflate will be truly awesome.  The US has more wars to blame others for, but the gold market has to become screwed up, first.  When I read from some dork that gold is going to $500, I'm all in.

Silveramada's picture

Ben, you loosing it..once the 10 yrs are at about 3- 3.5% you are done baby...

Bearwagon's picture

"all engines running . . . commit! . . . liftoff!"

Haus-Targaryen's picture

Buicks to the Moon.  Youtube it.  


Seriously though Ben prints it, Obama builds Buicks, and attempts to fling them to the moon with the world's largest slingshot.  StIMuLuS! 

blindman's picture

[KR461] Keiser Report: Global Financial Holocaust
Posted on June 22, 2013 by Stacy Herbert

Read more at SY7azJk.99
fake assets = fraud

kahunabear's picture

Oh my! I thought Bernanke owned all of these. Maybe some China liquidity problems coupled with spying blowback.

swissaustrian's picture

Bernanke ownes a lot of them. His losses are mounting.

There might be no profit transfers from the FED to the Treasury this year.

xtop23's picture


Gave me quite a chuckle. Thx for that.

Disastra's picture

My quoted 96% FHA mortgage payment for my manhattan condo has increased $300 per month in the past four weeks.


Its a short sale so we couldnt close fast.


Neither did I rate lock.


I am backing out of the contract this week.

Dr. No's picture

I recommend backing out just for the sake of f*cking the bank...