30Y Treasury Yield Tumbles Under 3.5% - Lowest In 9 Months

Tyler Durden's picture

The short-end of the Treasury curve continues to reprice higher in yield (3Y +2bps) as the term structure bear-flattens with 30Y yields rallying further after the aggressive 7Y auction. 30Y yields just broke below 3.5% (-4.5bps) - the lowest level intraday since early July 2013. 2s10s are now at 2.21% - near 10-month lows - and 5s30s has plunged to 1.80% - its flattest since September 2009.



Curves are flattening rapidly...


and German bunds are the richest (lowest in yield) relative to Treasuries since the crisis...


Chart: Bloomberg

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101 years and counting's picture



NoDebt's picture

Well, they say no.  So I'm guessing it's yes.

nuclearsquid's picture

Tyler, I am not a bond trader.  Tell me why i should care.

FieldingMellish's picture

With real rates gowing negative again, I am surprised (not really) that PMs continue to slide... although I note that silver is now outperforming and junior gold miners are green...

maskone909's picture

All of this in the context of the golden cross


FieldingMellish's picture

Which is meaningless as it was the last time in 2012.

CrashisOptimistic's picture

Interest rates have been falling a long time.  Decades.  Buoyant economic growth would reverse that.  Where is it?

youngman's picture

Welcome to two decades of nothing....that is how I see it....

disabledvet's picture

fine. "we'll trade Paris for Shanghai"....would that pique your interest?

the only rule is "No Americans and No "whatever it means to be Russian" now."

fonzannoon's picture

what gives here? The only thing I can guess is that the fed kicked everyone out of the long end of the curve last year and not enough people bought spy. so now they are kicking everyone out of the shorter end of the curve. they don't want people owning bonds. that's for damn sure.

NoDebt's picture

I'm guessing it probably isn't very hard to kick people out of the long end of the UST curve.  Enticing them to come back in....

I mean, seriously, think of the stones you would have to have in order to say "yep, I'll take 30 year government paper for 3.9%".  And then imagine finding the next guy in line to say the same thing at 3.5%.

Remember I'm a guy who used to dive head first in the Junk Bond market like I was fireproof or something.  And even I'm not ballsy enough to buy a 30 year UST.

hobopants's picture

Wow this should make it easy to keep rates low while tapering...

buzzsaw99's picture

Rhinoceros? Imposeros! [/Cowardly Lion]

CrashisOptimistic's picture

Old folks buy bonds.  Always have.  Always will. 

And now there are more of them.

disabledvet's picture

I was kinda pining for fewer old folks actually.

They do have the "Gray Panther militant wing" however.

fonzannoon's picture

AT&T and VZ etc is now the bond market. They are freeing up the bonds for foreigners to buy as Bill Gross continues to barf them up. I think the 5yr was at 1.3% when he tweeted to "Buy 5's".


knukles's picture

Hah ha ha ha ha
Bills too wrapped up in Bill right now to be bothered with Capital Markets

Where's that fucking Mohammed?

Yen Cross's picture


     Need moar yield...I have some dark side of the moon 30 year TIPs @ 5.00% for any interested parties.

   Paging Willy Gross...    <sarc/

buzzsaw99's picture

Me too Yen. Don't fire until you see the whites of his beady little eyes.

LostPolarBear's picture

The game continues...



PlusTic's picture

every asshole on planet earth has been putting on bear flatteners since old yeller had her freudian slip last week...she's even dumber than she looks, which is hard to believe

knukles's picture

They all work for the talker in chief.
You expect actions?

Yack yack yack yack

Ifigenia's picture

the more they print the cheaper the money yield? Someone must tell those guys that something terribly wrong is happening. Newton Law of Gravity aplly to everything, money include.


Or are someones playing god fucking the sheeps?

john39's picture

>>someones playing God

the NWO in a nutshell...

CrashisOptimistic's picture

You guys are just missing it.  THERE IS NO GROWTH.  No growth is bond bullish.  This has been going on for 30+ years.  Where is the growth that would change this?

Seasmoke's picture

On a long enough timeline, status quo can go on forever.