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Treasury Bills Are Collapsing As Stocks Surge Once Again
Having given back all of Charlie Dent's optimism rally overnight (and half of Harry Reid's), US equities are rallying once more on the back of another JPY induced momentum ignition. This utter farce is becoming whimsical as the Treasury Bill market is literally collapsing. 10/31/13 Bills are 16bps higher in yield overnight at 62.5bps as the whole front-end has lifted dramatically from just yesterday. GC Repo is higher again and as we noted last night fails-to-deliver are on the rise again. Something is very broken here and one can only hope that the heavy bid for Dec VIX futures is enough to protect the machines buying stocks if Reid's hope turns to its normal disappointment. Note that the USD and US Treasuries are alse being sold aggressively.
Despite overnight equity exuberance, T-Bills are decidedly unhappy...
but stocks don't care, this is a serious BTFATH moment...
and if you have any doubts as to what is driving US equities.... we tweeted (sarcastically) the need for some JPY momentum ignition...
We need some USDJPY momentum ignition
— zerohedge (@zerohedge) October 16, 2013
and what happens...
Charts: Bloomberg
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What's that ticking noise?
DOW 36K after default. Bank on it.
Kevin Henry's mom told me he never liked T-Bills.
Still wont default - last minute agreement coming or delay until next week.
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Join the Silver Pledge - an effort to change the system by having investors join up and buy physical silver - together we can break this market and take back our government.
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If you dont like it dont sign up - but for people who are sick of sitting and doing nothing at least lets work together to BREAK this silver market
Let's play a game...spot where the Muppets are investing. Thank you, Goldman Sachs.
No. Goldman Sachs thanks you!
GS FX Muppetslayer Tom Stolpers reco on 3 October, "going short $/JPY at current levels of about 97.30 for a tactical target of 94.00, with a stop on a close above 98.80" is only about 30 pips from his stop.
So, conversely, GS is doing quite well on the trade thus far.
http://www.zerohedge.com/news/2013-10-03/goldmans-tom-stolper-has-fx-trade-recommendation-you
All this sucks, but what really pisses me off is that I no longer get to see those snorg tees ads anymore since I just bought a Ruby book. Now all I see are nerdy ads about Ruby bullshit.
Moar snorg girls please! WTF
If the market is always correct, then I am insane.
I'm listening to the market message and refuse to do what its telling me. Lock me up.
Yeah what he said. Moar snorg girls, less fat belly trick cartoon girls!
Death by Obamacare suicide......let's do this!
Everyone get as many equities as you can.....we're taking them with us.
S&P 5000! Here we go! Yellen announces intention to double QE skipping QEIV and just go with QEV at $200 Billion a month till wall street & Washington employ everyone! You know, kind of like a modified USSR. Wall Street will be renamed Oligarch Street and Washington will be renamed Obamaville with the country will being rename UFO(United Federation of Obama) and yes presidential term limit will be removed! Dennis Rodman will be named World Ambassador and VP. As this market makes about this much sense!
The bernak was buying all those 10yr ust's at 3% and has been booking profits since. they are prob buying all these t-bills now and will really kick ass once they announce a deal and they return back to normal.
Not too sure on that pledge thingy. Just pick up a monster box or two and 'buy and hold'.
And I hope you're right about not default. Fitch seems to hope so too.
Yes yes on the eve of "default" Fitch has us at AAA negative watch. yup.
My patience with theblatant, ridiculously corrupt regulators. My patience with bought and paid for main stream media who are now nothing more than infomercials for the financial power brokers. And my patience with the blatant price rigging across all markets and what a pathetic circus they have become.
It's the sound of BTFATH orders being placed.
a drone with a propeller problem?
Death Watch beatle.
This is T-Billatating for the USSA...
Anybody see that coming??????
Buehler?
Buehler?
Un-fucken-real!
May we finally have a default-induced market collapse?
I remember my broker in 1998 advising get out of internet stocks...they're going to blow. He was a little early but saved me tons of money by being cautious.
These crashes are very hard to time but all the signs seem to be there again this time.
UH, you must have forgotten it's different this time with QE,POMO and the Eternal Press! Scoop 'em -20.
You were lucky to have a good broker like that!
its amazing.
when i was younger, and it still holds true today ( at least in the real world) that actions always speak louder than words.
However, in this market, i guess words speak louder than actions. who needs action, as long as we have that fucking old piece of shit harry reid spewing utter bullshit how they are always close to a deal.
notice how senate is not meeting until noon today? we must let stocks go up as high as possible before any further possible disappointment,
lets make sure fb hits 52 today, its such a great company. also, nflx must hit 350 today. also, citigroup which reported terrible numbers across the board never sold off to begin with and is now of course up modestly.
what you describing sounds like somone else who knows about the markets moves the pieces ...
JUST NATIONALIZE PIMPCO, LET THEM BUY ALL THE DEBT WITH ALL THEIR MONEY
AND CANCEL THE DEBT!!!
IT WORKED IN POLAND AND ONLY THE COMON PEOPLE LOST THEIR MONEY!!!
The Republic is saved AND THOSE EVIL JEDI ARE DEATH!
Apple has more cash on hand than Pimco for these sorts of things.
But PIMPCO has more collateral ;)
Collateral is worth 100 times it's value in today's world!
What kind of collateral does PIMPCO possess? PIMPCO ownes a bunch of paper that is worthless, that is guaranteed by a private company (the Federal Reserve) that itself owns nothing but paper (the gold is gone). Again, what collateral does PIMPCO possess?
zh, Tylers, and many here have contributed much to this world, and a piece of advice, to give back in a humble way:
When they sign the Greatest Solution of All Time,,,do not look directly at the S/P. It'll be like living on a Marshall Island's atoll circa 1952.
do not look directly at the S/P
LOL
HR 368 - Proof the republicans wanted this shutdown
Good night and good luck.
Just checking.....nope.....this isn't HuffPo.
Nope, it's the American Taliban site.
"I will not negotiate..." - Proof that Obama wanted this clown show called "shutdown".
Now, that's what they tell us he said.
Has anyone actually seen him step out in front of TV cameras and read it from his teleprompter.
Until then, we have to assume he's busy squirreling away his time in Reggie's Love box or taking the Wookie on its poop walk.
MOAR monetization! Thats what we are all supposed to do for a living right?
/sarc
Not saying it's going to happen, since it's impossible to accurately predict the trajectory of a Ponzi scheme but this lift in T-Bill yields is contributing to a compressing of money market spreads. It is not infeasible that it starts a trend all along the short end & the central bank will follow, spreads compressing further, the stock market soaring, shoe shine boys becoming billionaires etc etc.
Of course I could be wrong, or even right until I'm wrong.
It's always busy at the craps table when people are placing their bets before the dice roll.
It's Wednesday, and when CONgress colludes to screw us and our progeny all over again (sell us down the river) it will be green for the markets and back to pretending everything's under control, Ben's Bon Voyage/Yellen's coronation, and non-stop commercials for the holidays.
I am going to start "walking" using my hands. Upside down ... it makes sense.
It's exhilerating! You'll LOVE it!
Things are not all that bad. Example: Canadian Manufacturing is holding up: -.2 Expected .2 Last 1.7
Who cares. s/p 1800. Said it before, say it again. It will get there soon.
Headlines of the near future................................
"Stocks limit UP on US debt default"
"Ben Bernanke gifts primary dealers 1 Trillion US$ as parting thank you"
"We should have defaulted years ago; this is working out brilliantly, says US President"
"It was all my idea, says US President"
This is like the last few days of ObamaCare legislation. It is no longer about content but partisanship, winners and loosers. Despicable. The President should put himself above this as the final arbitrator but he is incapable, a disgraceful public servant.
Why should he display leadership now, when he hasn't shown any his entire career?
looks like these assholes are going to makee sure the all of yesterdays losses are wiped out at the open.
not that we need any proof that the entire market is traded by algos and not real human beings, but if it were real human beings trading, thee is no way the market would go up everyday on these same fucking bullshit rumors. a rational human would prob say'' i want to see action rather than words.
not the algos though.
fucking warren buffet on cnbc now, this douchebag just said its 100 percent the republicans fault for what is happening now. hey warren go fuck yourself you fucking scumbag. if the fed left the market you would fucking lose half your wealth you douchebag
if we get a bullshit kick the can down the road deal, we will prob see a fiscal cliff type rally, all global markets rally 1000 pts each on the same shit.
i want 2008-2009 again so fucking badly. i want bankers to fucking jump to there deaths fucking assholes.
If the Republicans let this go over the cliff, they could still be big winners. Either Jack Lew becomes enlightened and discovers that incoming tax receipts more than cover interest, or Obama does some dictator-like takeover, or we see government continue at a reduced rate without non-essential employees.
The "essential" employees working now are non-essential, unless you need them for the new police state.
If that's the case, then a gold smash will ensue in 3...2...1.....
Trust me honey, this pull out trick will work just fine.
The Fed should be scared shitless by their creation--a non-logical market run by ALGOS driven by controlled correlations-- however, Daddy Bernanke is a proud Father and Mother Yellen is a happy supportive proud wife.
The Fed is not scared of anyone. If the system crashes, it will crash by design.
...that is why daddy and mommy are PROUD.
Will Cruz and Paul stand their ground and delay the Senate bill?
The Senate will pass a bill that the President will sign, the House won’t. The President will then blame the Tea Party of letting the country default and scare everyone that is on SS and Medicare. Hoping people then hate Tea Party/Repubs more and the Dems gain in the House in 2014.
Even if the House has some small victories they will loses the war. They fail to communicate to the American people their plans/ideas in any factual form, no content. That is their holdback. Americans want content, want to understand the fine print.
Give the Ameican people something they can get behind. Not just the title of a book or the chapter titles, give us content. If you have any?
“People think they have taken quite an extraordinarily bold step forward when they have rid themselves of belief in hereditary monarchy and swear by the democratic republic. In reality, however, the state is nothing but a machine for the oppression of one class by another, and indeed in the democratic republic no less than in the monarchy.”
-- Friedrich Engels
"Note that the USD and US Treasuries are alse being sold aggressively."
Sold from the right hand to the left hand of the Fed. No one else is buying.
I could definitely go out there and kill someone. I would start with Jaimee Dimon, then move on to Llloyd Blankflein and finally Uncle Ben.
look at this sick feigned tripe. I loathe them. Anybody watching this must be sickened by these bitches! Shut these ballbags down. Once and for all.