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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Thu, 03/27/2014 - 13:55 | 4599371 101 years and c...
101 years and counting's picture



Thu, 03/27/2014 - 14:37 | 4599566 NoDebt
NoDebt's picture

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

Thu, 03/27/2014 - 15:32 | 4599894 nuclearsquid
nuclearsquid's picture

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

Thu, 03/27/2014 - 13:57 | 4599386 FieldingMellish
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...

Thu, 03/27/2014 - 14:09 | 4599430 maskone909
maskone909's picture

All of this in the context of the golden cross


Thu, 03/27/2014 - 14:15 | 4599454 FieldingMellish
FieldingMellish's picture

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

Thu, 03/27/2014 - 13:58 | 4599387 CrashisOptimistic
CrashisOptimistic's picture

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

Thu, 03/27/2014 - 14:00 | 4599396 youngman
youngman's picture

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

Thu, 03/27/2014 - 14:05 | 4599415 disabledvet
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."

Thu, 03/27/2014 - 14:00 | 4599397 fonzannoon
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.

Thu, 03/27/2014 - 14:43 | 4599598 NoDebt
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.

Thu, 03/27/2014 - 15:18 | 4599809 hobopants
hobopants's picture

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

Thu, 03/27/2014 - 14:01 | 4599403 PlusTic
PlusTic's picture

tic toc

Thu, 03/27/2014 - 14:04 | 4599413 buzzsaw99
buzzsaw99's picture

Rhinoceros? Imposeros! [/Cowardly Lion]

Thu, 03/27/2014 - 14:04 | 4599414 CrashisOptimistic
CrashisOptimistic's picture

Old folks buy bonds.  Always have.  Always will. 

And now there are more of them.

Thu, 03/27/2014 - 14:07 | 4599424 disabledvet
disabledvet's picture

I was kinda pining for fewer old folks actually.

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

Thu, 03/27/2014 - 14:07 | 4599425 fonzannoon
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".


Thu, 03/27/2014 - 14:14 | 4599447 knukles
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?

Thu, 03/27/2014 - 14:05 | 4599416 Yen Cross
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/

Thu, 03/27/2014 - 14:20 | 4599475 buzzsaw99
buzzsaw99's picture

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

Thu, 03/27/2014 - 14:22 | 4599490 Yen Cross
Yen Cross's picture

 lol .

Thu, 03/27/2014 - 14:05 | 4599418 LostPolarBear
LostPolarBear's picture

The game continues...



Thu, 03/27/2014 - 14:10 | 4599436 PlusTic
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

Thu, 03/27/2014 - 14:17 | 4599466 knukles
knukles's picture

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

Yack yack yack yack

Thu, 03/27/2014 - 14:27 | 4599501 Ifigenia
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?

Thu, 03/27/2014 - 14:32 | 4599517 john39
john39's picture

>>someones playing God

the NWO in a nutshell...

Thu, 03/27/2014 - 14:36 | 4599558 CrashisOptimistic
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?

Thu, 03/27/2014 - 14:49 | 4599651 dcj98gst
dcj98gst's picture

In the money supply.  

Thu, 03/27/2014 - 14:37 | 4599564 Seasmoke
Seasmoke's picture

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

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