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30Y Treasury Yield Tumbles To 7-Month Lows As Nasdaq Loses 4,000

Tyler Durden's picture


US equities are pressing fresh lows of the day as USDJPY tests 101. The Nasdaq just broke 4,000 - its worst drop in 8 months; The Dow trading back under its 200DMA; and now every major index is in negative territory from the December Taper. Most notably though, Treasury yields are tumbling as weak data and safe-haven flows have pressed 30-year yields to their lowest sicen July 5th 2013. VIX is trading 20.7% - its highest in 4 months.


All major indices now red from the December Taper...


As Nasdaq loses 4000 and drops by the most since June..


as Bond yields collapse to 7 month lows...


Charts: Bloomberg

Bonus Chart - WTF in financials...


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Mon, 02/03/2014 - 14:41 | 4396412 Rainman
Rainman's picture

By Gosh .... It's a beautiful day to be a Doom Porn addict !

Mon, 02/03/2014 - 14:43 | 4396424 fonzannoon
fonzannoon's picture

Where is grandma Yellen? Where is papa Bernak????? Turn those machines back on!!!!!!!!!!!

Mon, 02/03/2014 - 14:47 | 4396451 Headbanger
Headbanger's picture

Ain't gonna happen Fonzo! 

Mon, 02/03/2014 - 14:48 | 4396459 fonzannoon
fonzannoon's picture

well they have pulled back on QE twice and both times the market made em do a u turn. If it ain't happening I better get off Long Island before the bridges close and the zombie sheeple come out.

Mon, 02/03/2014 - 14:55 | 4396485 Pheonyte
Pheonyte's picture

Truth. What haunts me the most is that I only need one hand to count the number of ways off this damned island. When the shtf we're fukked.

Mon, 02/03/2014 - 14:57 | 4396512 camaro68ss
camaro68ss's picture

the feds must have "jumpped the shark"

Mon, 02/03/2014 - 15:56 | 4396859 superflex
superflex's picture

USD/JPY approaching 101 

Sound the collision alarm.  Man all lifeboats.  Cue the band.  Hard starboard!


Mon, 02/03/2014 - 16:53 | 4397138 I am more equal...
I am more equal than others's picture




All that money is got to flow somewhere.  When there is nowhere to go, that's when it will get interesting.  Talk about a great conflagration. 

Mon, 02/03/2014 - 18:50 | 4397660 wallstreetapost...
wallstreetaposteriori's picture

Meanwhile.... fonestar is busy playing with his fractional bitcoin....

Mon, 02/03/2014 - 14:58 | 4396525 Master_Blaster
Master_Blaster's picture

It's why I left Chicago to move back out west......

Mon, 02/03/2014 - 15:36 | 4396759 DrunkMath
DrunkMath's picture

Swim you pussies.

Mon, 02/03/2014 - 16:31 | 4397002 Tall Tom
Tall Tom's picture

When the shtf we're fukked


There is NO WHEN about it. We are already FUCKED.


The Shit has already hit the fan back in 2008 if not before.

Everybody has been weathering a Shitstorm.

The Shit is so deep already that many are just treading knee high Shit.

There is a Tsunami of Shit headed our way from Foreign Shores. It will get a whole lot worse.

Many will be drowned in Shit and not make it through.

The shit is everywhere. There is no escaping the Shit.

The Shit is in youe wallet. It is in your Bank Account. It is in your Car Payment. It is in your Mortgage.

The shit is called DEBT. Even the Currency that you use is DEBT.


When you claim that the shit will not affect you then you delude yourself. I read many here, "I have my House paid off.", "I am not in Debt", or "I have bought Gold and Silver"


Now while these are good and effective strategies against the Shit Tsunami, that you are still swimming in an ocean of Shit is merely a testimony to the undisputed fact because other people's shit currently affects you and will continue to affect you. Unfortunately you can not absolutely insulate yourself from the Shitstorm as it oozes into every facet of life. You can bet as the Ocean of Shit rises that the Shit will affect you even more.


So the question at hand is how well can you tread Shit? You cannot tread Shit when you are swimming in it. I do not even believe that the High Ground and unmoveable foundation of REAL MONEY, REAL WEALTH, Gold and Silver, will save most whom have been prudent enough to save it. Prepping with Food, Water and Durable Goods will only serve to prolong the suffering of far too many of you, the prudent.


Yes this will get a whole lot worse. There will be riots and killings. There will be a substantial loss of the Standard of Living for far too many, even that of the Prudent.


With Gold and Silver you will end up POOR. Without Gold and Silver you will end up DESTITUTE if not DEAD.


The Shit has already hit the fan. Look around at the VACANCIES in your neighborhood because the Fed will not allow them to be marketed because of the MBS purchases. Look at the VACANCIES of the Storefronts in the Strip Malls in your town. In some sections of towns they outnumber the stores.


The Tsunami, however, approaches. But the Shit has already hit the fan. And we are being FUCKED UP THE ASS HARD. It is just a question of how much shit can you tolerate?

Mon, 02/03/2014 - 18:34 | 4397572 Unknown User
Unknown User's picture

The only way out is for governments to issue debt free money.


“The government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity. The financing of all public enterprise, and the conduct of the treasury will become matters of practical administration. Money will cease to be master and will then become servant of humanity.” - Abraham Lincoln

Mon, 02/03/2014 - 14:54 | 4396490 Oldwood
Oldwood's picture

They eat BRAINS!!

Mon, 02/03/2014 - 15:05 | 4396563 Levadiakos
Levadiakos's picture
  • "In four hours the ship blows up" -- Scotty (The Savage Curtain)
Mon, 02/03/2014 - 15:57 | 4396856 Headbanger
Headbanger's picture

LOWNGEYELAND??   Get outta heayhh!!   Never been there. 

Mon, 02/03/2014 - 15:01 | 4396529 Renewable Life
Renewable Life's picture

+100 for Grandma Yellen!!!  Thats even better then Uncle Ben!  Someone text alert me when Cramer starts screaming on CNBC, that "they dont know whats going on down here, we're getting slaughtered" 

I dont want to miss that shit! 

Mon, 02/03/2014 - 14:45 | 4396433 slaughterer
slaughterer's picture

These kind of gloating ZH articles usually mark the short term bottom.  The algos are locked into copy like this.  

Mon, 02/03/2014 - 14:45 | 4396446 astoriajoe
astoriajoe's picture


Mon, 02/03/2014 - 14:47 | 4396455 RebelDevil
RebelDevil's picture

SPY broke 1750!

Mon, 02/03/2014 - 14:52 | 4396471 Thought Processor
Thought Processor's picture

Agreed.   But the Yen is on the squeeze now and there are some big air pockets on that currency cross.


Watch Japan.



Mon, 02/03/2014 - 15:12 | 4396623 TheInfoman
TheInfoman's picture

Please explain.

Mon, 02/03/2014 - 15:20 | 4396666 lasvegaspersona
lasvegaspersona's picture

Cheap Yen are what is being spent to keep the rally going. Japan can't loan them out fast enough the value of the Yen rises and the world's markets crash....I know it makes no sense but that is what I think it happening. It is bizarre that you can't kill the Yen when you try isn't it?

Mon, 02/03/2014 - 15:45 | 4396799 TheInfoman
TheInfoman's picture

Ah.  Now I got it.  Thanx!

Mon, 02/03/2014 - 14:54 | 4396491 Jonas Parker
Jonas Parker's picture

Deja vu all over again! 2008, or even Jimmeh Carter!

Mon, 02/03/2014 - 14:57 | 4396500 29.5 hours
29.5 hours's picture



"gloating ZH articles usually mark the short term bottom"

Agree. Besides, I am sure CNBC will point out the markets "were off the lows" at the close.



Mon, 02/03/2014 - 14:58 | 4396517 fuu
fuu's picture

Tyler, make gold go down please.

Mon, 02/03/2014 - 16:50 | 4397121 Al Gorerhythm
Al Gorerhythm's picture

I see smoking, confused algorerythmically programmed bots spitting out +10% bid/ask spreads more frequently and Mary-Jo White all over it like white on rice.

Mon, 02/03/2014 - 14:46 | 4396436 Headbanger
Headbanger's picture

I've had a wicked hard on all morning watching it get pounded !

Mon, 02/03/2014 - 14:46 | 4396440 Dr. Richard Head
Dr. Richard Head's picture

Tell me about it.  I have been hitting refresh more often today on ZH than I have in years.  In fact, it feels earily similiar to a period of time when interest rates were increased in a manner to cause this strange crash, almost like it was engineered or something.  I just can't put me finger on it, but it's like 'Deja Vu all over again" - Yogi Berra

Mon, 02/03/2014 - 14:45 | 4396441 TruthInSunshine
TruthInSunshine's picture

This is consistent with equity "market" history repeating, based on the results of the Superbowl.

Whenever the Seahawks have won the Superbowl (/sarc) AND a functionally austistic Federal Reserve Chairman has blown a massive bubble in just about every asset class over the last 4 1/2 years, things fared terribly going forward.

Mon, 02/03/2014 - 14:51 | 4396470 Dr. Richard Head
Dr. Richard Head's picture

Benny is done blowing bubbles and instead blowing Brookings.

Mon, 02/03/2014 - 16:57 | 4397147 Tall Tom
Tall Tom's picture

Your post sent me on a Dystopian Flight of the fantastic..


Well since no original NFL Team won the Superbowl in 2014 it was supposed to be a Recession Year...

That COUPLED WITH a functionally autistic Federal Reserve Chairman who blew massive Bubbles in just about every asset class over the previous 4 1/2 years, while intentionally depressing Economic Indicators that sent false signals (such as the Gold Price) reverberating throughout World Economies, guaranteed that the conditions deteriorated terribly going forward. As a result the US Markets and World Markets collapsed.


From the Requiem, "The Destruction of the United States Economy" Chapter 25, The Poor Decisions of the 21st Century Federal Reserve Bank., which was published in 2036, right before the Collision with the Asteroid.


I hope that you enjoyed my rendition of you post...


Damn I love Doom Porn.

Tue, 02/04/2014 - 00:19 | 4398931 TruthInSunshine
TruthInSunshine's picture

I approve that shizznit. I'd suggest forwarding it to Market Watch, but they should be forced to pay you a sizable sum for the right to publish it.

Mon, 02/03/2014 - 14:51 | 4396468 rotagen
rotagen's picture

Bullish on doom, drought, and mad max.

Mon, 02/03/2014 - 15:09 | 4396597 Levadiakos
Levadiakos's picture
  • "The Federation's gone; the Borg is everywhere!" -- Alternate Captain Riker (Parallels)
Mon, 02/03/2014 - 14:58 | 4396507 Millivanilli
Millivanilli's picture

Yellen to the rescue...   


And gold and silver TO THE MOON!

Mon, 02/03/2014 - 16:00 | 4396673 stant
stant's picture

wheres million dollar bonehead and the down junker troll?

. Ps there's one of them

Mon, 02/03/2014 - 14:41 | 4396417 Walter E Kurtz
Walter E Kurtz's picture

Bring out the deer! O_0

Mon, 02/03/2014 - 14:44 | 4396431 fonzannoon
fonzannoon's picture

forget the deer. Where is WB7 we need a visual of the curtain being pulled back

Mon, 02/03/2014 - 14:43 | 4396419 LoneStarHog
LoneStarHog's picture

Who said that you can "never go back".  1999-2000

Mon, 02/03/2014 - 14:43 | 4396421 Hulk
Hulk's picture

Whats the price of risk again ??? Unfucking believable...

Mon, 02/03/2014 - 14:44 | 4396422 One And Only
One And Only's picture


Mon, 02/03/2014 - 14:47 | 4396443 Thought Processor
Thought Processor's picture

That and the largest holder of Bitcoins is now the US Gov. via a certain arrest not long ago.

Talk about ripe for manipulation.   

Mon, 02/03/2014 - 16:40 | 4397066 fonestar
fonestar's picture

US Gov is not the largest holder of Bitcoin for fuck's sakes!  I am sick of you sheep with your bullshit FUD and propaganda.

Mon, 02/03/2014 - 16:55 | 4397154 Spanky
Spanky's picture

Really? I thought bitcoin "anonymous" and thus it would be impossible to know... for certain. Pray tell fonestar...

Mon, 02/03/2014 - 14:45 | 4396423 philosophers bone
philosophers bone's picture

But the retail investor hasn't even joined the party yet!!  Oh wait, they jointed the party last month when every talking head Wall Street money manager predicted strong market returns in 2014?  Unlucky timing!  Just stay the course!   /s off

Mon, 02/03/2014 - 14:46 | 4396438 Winston Churchill
Winston Churchill's picture

Wuld you like burnt mutton ,or muppet ,with you champange

Mon, 02/03/2014 - 15:00 | 4396533 TruthInSunshine
TruthInSunshine's picture

The Tom Stolper Vortex

Mon, 02/03/2014 - 14:46 | 4396453 CrashisOptimistic
CrashisOptimistic's picture

They sure did:

"Look, we KNOW interest rates are going sharply higher as the economy bursts forth to a real breakout year.  You have to decide what money manager can best position you in the right industries to benefit."



Mon, 02/03/2014 - 15:19 | 4396656 philosophers bone
philosophers bone's picture

How much longer til the next "Schiff is Right" video?  Makeup please.

Mon, 02/03/2014 - 14:42 | 4396429 midtowng
midtowng's picture

Gold is going up.

Mon, 02/03/2014 - 16:03 | 4396880 superflex
superflex's picture

What you talking about Willis?

Mon, 02/03/2014 - 14:45 | 4396439 thismarketisrigged
thismarketisrigged's picture

this better just be the fucking beginning and not the end.



Mon, 02/03/2014 - 14:46 | 4396454 monopoly
monopoly's picture

And so it begins. Just the beginning.

Mon, 02/03/2014 - 14:52 | 4396475 Winston Churchill
Winston Churchill's picture

Of the end.

We live in interesting times.

Mon, 02/03/2014 - 14:52 | 4396477 Dr. Engali
Dr. Engali's picture

They better be careful. This shit's about to spin out of control. Five years worth of printing will get wiped out in days. But treasuries are catching a bid. Mission accomplished.

Mon, 02/03/2014 - 14:56 | 4396498 fuu
fuu's picture

The Europe close effect was weak again today.

Mon, 02/03/2014 - 14:57 | 4396501 LawsofPhysics
LawsofPhysics's picture

What have I been saying for several months now...

"You will buy treasuries, yes you will..."


Mon, 02/03/2014 - 15:03 | 4396561 CrashisOptimistic
CrashisOptimistic's picture

Well, you got a choice.

Argentine pesos or US T's.  What's it gonna be?

Mon, 02/03/2014 - 15:16 | 4396635 amadeusb4
amadeusb4's picture

And that's how they unwind QE! Because without 2013, a 15% correction would have looked awful but now it will just get us back into the low 1600's.

Mon, 02/03/2014 - 16:42 | 4397076 eclectic syncretist
eclectic syncretist's picture

I already bought treasuries, and I will dump them long before I dump my miners if things play out as I suspect they will.  This is nothing more than an initial flight to safety.

Mon, 02/03/2014 - 14:56 | 4396502 market le pew
market le pew's picture

repeat after me:


Mon, 02/03/2014 - 16:40 | 4397072 disabledvet
disabledvet's picture


Mon, 02/03/2014 - 14:58 | 4396505 Music101
Music101's picture

Bond market always seems to know... it's a WORLD OF DEBT!! See Video Below:

Mon, 02/03/2014 - 14:57 | 4396509 Yen Cross
Yen Cross's picture

    The Corpse-Russell 2000 is being run through the wood chipper. Down 3.26%. Lol even a caveman could see this coming in December.

Mon, 02/03/2014 - 16:42 | 4397075 disabledvet
disabledvet's picture


Mon, 02/03/2014 - 16:42 | 4397082 eclectic syncretist
eclectic syncretist's picture

You knew it was long overdue and they told you the taper would start then, didn't they.  What else did anyone really need to know?

Mon, 02/03/2014 - 14:58 | 4396511 Hero Protagonist
Hero Protagonist's picture

But good news is bad news is good news is....crap...bad news is good news is bad news is good news...crap...

Mon, 02/03/2014 - 14:57 | 4396515 rsnoble
rsnoble's picture

I wonder where all the idiots that we've been arguing with for years that 'feds dont pump the markets' are at?  Let's pull the entire plug and see what happens now that would be bad ass.

Mon, 02/03/2014 - 15:01 | 4396537 Hulk
Hulk's picture

Brinker being one of those idiots. I had to quit listening to him...

Mon, 02/03/2014 - 15:00 | 4396522 Save_America1st
Save_America1st's picture

gold/silver miners are holding strong, etf's in green:  GDX, GDXJ, NUGT, JNUG, even PSLV is holding strong.

Fuck the equities...the bottom has already been had in the mining stocks and there are some majorly fat nuggets waiting to be picked for humongous gains out there. 

And once the miners light fire, look the fuck out, cuz that's when phyzz is going to go crazy.

Keep stacking phyzz now while you have the chance at these still unbelievably below cost of production prices...they ain't going to last much longer, folks!!!

Mon, 02/03/2014 - 15:01 | 4396535 youngman
youngman's picture

They are many moving parts right now.....7 countries screwing around with their fiats.....things could go bad fast...

Mon, 02/03/2014 - 15:10 | 4396607 kralizec
kralizec's picture

Wheel of Misfortune

Mon, 02/03/2014 - 15:08 | 4396595 Unknown Poster
Unknown Poster's picture

QE was supposed to drive down rates, Taper did the trick.

Mon, 02/03/2014 - 15:13 | 4396626 Disenchanted
Disenchanted's picture

Looks like it's about time for the 1400-1600 ramp job...or an attempt of such.

Mon, 02/03/2014 - 15:16 | 4396637 lasvegaspersona
lasvegaspersona's picture

Like many I was surprised when the Fed tapered. I thought 'well things will go to shit and they won't let that happen....but they did.

Now I'm asking myself why they did it. They had to know that tapering would cause significant deterioration in the markets. Why did they allow it (and all the derivative implications) to fall?

This is confusing me. I must wonder if they are ready to call it quits on the dollar. Maybe they see that it just won't work and optics will be better if they are seen to  be doing less as it fails rather than more.

Why support the system for 5 years with extrordinary efforts and then just let it fail?

Mon, 02/03/2014 - 16:50 | 4397116 eclectic syncretist
eclectic syncretist's picture

It would have failed even if they continued to print more and more.  In fact, it would have failed even more spectacularly if they did so.  By tightening now they they have the best chance of keeping everyone convinced (hoodwinked into believing) that they are in control of things.  They feel they have to be perceived as in control, and that's why they're tanking the market.

In the end they will ultimately fail because that is what fiat does.

Mon, 02/03/2014 - 15:28 | 4396730 Rockatanski
Rockatanski's picture

are falling treasury rates bad? seems they should be good for the borrower (treasury) but bad for the investor, right?


but what is the big picture?

Mon, 02/03/2014 - 15:52 | 4396828 Pareto
Pareto's picture

Wondering if Hugh is now acutely feeling what its like to be "taken out behind the wood shed."?

Mon, 02/03/2014 - 15:52 | 4396835 Mr_Wonderful
Mr_Wonderful's picture

Yep, of course they want to drive down rates. Also the staggeringly overbought stock market desperately needs a major correction.

Mon, 02/03/2014 - 15:54 | 4396846 Spungo
Spungo's picture

"are falling treasury rates bad? seems they should be good for the borrower (treasury) but bad for the investor, right?"

They're not good or bad, but they show what the market is thinking. Bond yields go down when bond price goes up, so the falling yield means people are rushing into bonds. That by itself doesn't mean much. Stocks going down while this happens would imply that people are selling stocks to buy bonds.
Why would you personally want to sell stocks and buy bonds? It could be because you think the stock market isn't going any higher and you need a place to park your money. The two could also be totally unrelated. Maybe people in other countries don't trust their local shit currency and would rather hold bonds in US dollars. Since the VIX is rising at the same time, I think the market is anticipating a correction or crash. It could be a combination of things - anticipating a crash and people fleeing shit currencies.

Mon, 02/03/2014 - 16:25 | 4397000 Mr_Wonderful
Mr_Wonderful's picture

There were two 1000+ drops in the Dow in 2012 and then followed this maniacal run-up. Current turbulance is not conclusive yet but the last years sure do resemble how money desperately piled into to be crashed in 2008. Personally I think that the next crash will be from a higher level.

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