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30Y Treasury Yield Tumbles To 7-Month Lows As Nasdaq Loses 4,000
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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By Gosh .... It's a beautiful day to be a Doom Porn addict !
Where is grandma Yellen? Where is papa Bernak????? Turn those machines back on!!!!!!!!!!!
Ain't gonna happen Fonzo!
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.
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.
the feds must have "jumpped the shark"
USD/JPY approaching 101
Sound the collision alarm. Man all lifeboats. Cue the band. Hard starboard!
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.
Meanwhile.... fonestar is busy playing with his fractional bitcoin....
It's why I left Chicago to move back out west......
Swim you pussies.
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?
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
They eat BRAINS!!
LOWNGEYELAND?? Get outta heayhh!! Never been there.
+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!
These kind of gloating ZH articles usually mark the short term bottom. The algos are locked into copy like this.
meh
SPY broke 1750!
Agreed. But the Yen is on the squeeze now and there are some big air pockets on that currency cross.
Watch Japan.
Please explain.
Cheap Yen are what is being spent to keep the rally going. Japan can't loan them out fast enough ...so 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?
Ah. Now I got it. Thanx!
Deja vu all over again! 2008, or even Jimmeh Carter!
"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.
Tyler, make gold go down please.
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.
I've had a wicked hard on all morning watching it get pounded !
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
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.
Benny is done blowing bubbles and instead blowing Brookings.
http://www.huffingtonpost.com/2014/02/03/ben-bernanke-brookings-institute-_n_4716815.html
Your post sent me on a Dystopian Flight of the fantastic..
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.
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.
Bullish on doom, drought, and mad max.
Yellen to the rescue...
And gold and silver TO THE MOON!
wheres million dollar bonehead and the down junker troll?
. Ps there's one of them
Bring out the deer! O_0
forget the deer. Where is WB7 we need a visual of the curtain being pulled back
http://static.comicvine.com/uploads/original/13/132162/3018993-bear+cava...
Who said that you can "never go back". 1999-2000
Whats the price of risk again ??? Unfucking believable...
BITCOIN IS TOO VOLATILE DONT BUY ITTTTT!!!!!
That and the largest holder of Bitcoins is now the US Gov. via a certain arrest not long ago.
Talk about ripe for manipulation.
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.
Really? I thought bitcoin "anonymous" and thus it would be impossible to know... for certain. Pray tell fonestar...
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
Wuld you like burnt mutton ,or muppet ,with you champange
The Tom Stolper Vortex
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."
How much longer til the next "Schiff is Right" video? Makeup please.
Gold is going up.
What you talking about Willis?
this better just be the fucking beginning and not the end.
And so it begins. Just the beginning.
Of the end.
We live in interesting times.
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.
The Europe close effect was weak again today.
What have I been saying for several months now...
"You will buy treasuries, yes you will..."
Well, you got a choice.
Argentine pesos or US T's. What's it gonna be?
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.
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.
repeat after me:
THE TAPER IS PRICED IN!!!
THE TASER IS PRICED IN!
Bond market always seems to know... it's a WORLD OF DEBT!! See Video Below:
http://www.youtube.com/watch?v=99xsqxzJnXs
The Corpse-Russell 2000 is being run through the wood chipper. Down 3.26%. Lol even a caveman could see this coming in December.
Really?
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?
But good news is bad news is good news is....crap...bad news is good news is bad news is good news...crap...
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.
Brinker being one of those idiots. I had to quit listening to him...
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!!!
They are many moving parts right now.....7 countries screwing around with their fiats.....things could go bad fast...
Wheel of Misfortune
QE was supposed to drive down rates, Taper did the trick.
Looks like it's about time for the 1400-1600 ramp job...or an attempt of such.
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?
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.
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?
Wondering if Hugh is now acutely feeling what its like to be "taken out behind the wood shed."?
Yep, of course they want to drive down rates. Also the staggeringly overbought stock market desperately needs a major correction.
"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.
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.