This page has been archived and commenting is disabled.

10Y Yield Hits 7-Month Lows As Gold Surges

Tyler Durden's picture




 

With Japan out and Europe quiet, markets are without their normal random Nikkei headline or ECB quote of the day to juice JPY (unable to break back above 102) and stocks (for now)... and of course, it's not Tuesday. Treasury yields are lower for the 5th day in a row with 10Y breaking below 2.57% (Feb lows) to its lowest in 7 months; 30Y continues to tumble to fresh 11-month lows (below 3.35%). Gold remains bid, now pressing up to $1315 (and well above its 200-day-moving-average) and silver is rallying. Stock futures are weak having lost the post-China PMI lows as Ukraine fear continues to rise. As far as "costs", Russian stocks are down for the 2nd day in a row (around the same as US stocks for now) but the Ruble is modestly stronger even as Russian bonds weaken slightly to 9.43% yields.

 

10Y at new 7-month lows...

 

Stocks at last week's lows...

 

and Gold at 2-week highs... (with its biggest 2-day gain in over 3 months)

 

And a reminder of the "costs" of sanctions...

 

Charts: Bloomberg

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 05/05/2014 - 08:39 | 4727881 wallstreetapost...
wallstreetaposteriori's picture

the 10 yr yield is going much lower and gold is going much higher.  This is only the beginning of the great leverage unwind.

 

Mon, 05/05/2014 - 08:44 | 4727900 knukles
knukles's picture

Heavens... And all this time I thought I was alone!

Mon, 05/05/2014 - 09:37 | 4728077 Pareto
Pareto's picture

+1 Its true knuckles!  i remember when you made the call about 6 or so months or better ago - gold and bond prices higher (perhaps even negative).  They laughed at you like they did Jesus! lol

Mon, 05/05/2014 - 09:59 | 4728177 SAT 800
SAT 800's picture

I covered my Long Bond positions @136-08; for -$100 P&L. Covered the S&P500 shorts @1862 for +2200, overnight. I have a new position short Aug. Feeder Cattle @190.35; and I'm staying with the Short JPY. /there's too many things that could cause a flight to quality, so called, in the Bond. I'll get back to that sometime later; right now I prefer to sit on t hese other positions.

Mon, 05/05/2014 - 10:25 | 4728235 bam
bam's picture

been blogging structured option positions on gold. check it out the latest entry: http://optiontronic.blogspot.ca/2014/05/gld-structure-update-2-fully-clo...

here's a call ratio structure going into june: http://optiontronic.blogspot.ca/2014/04/gold-better-way-to-go-long-part-...

here's the orginal put side structure which has been closed already: http://optiontronic.blogspot.ca/2014/04/gold-better-way-to-go-long-part-...

 

 

 

Mon, 05/05/2014 - 11:13 | 4728376 Hongcha
Hongcha's picture

Wallstreeta, I like how you think.  To which I will add, Russian stawks are going moar high as well.  

Gazprom is a screaming buy at this level.  It is also a very useful day-to-gauge of what the $$ thinks about the state of affairs in Ukraine.

Gazprom and Sberbank are flat to up today.  I added more of each but have not arrived at 50% of what I intend to own.

When the all clear sounds, and there is a 95% chance it will by the end of the summer when the first waft of cool air hits Angela Merkel's flared nostrils, they will be as close to minting $$ as we are likely to see in quite a while.  I can't pound the desk enough on those 2, particularly Gazprom.

But don't bet lifechanging $$ on either; because if they get zeroed out somehow, that means the gauge has flipped drastically in the other direction and we have major problems afoot.

Mon, 05/05/2014 - 08:40 | 4727885 A_Nejad
A_Nejad's picture

what?? someone wants payment in gold or something?

Mon, 05/05/2014 - 08:40 | 4727886 Tabarnaque
Tabarnaque's picture

I believe that it was Morgan Stanley who said a couple of weeks ago that gold would never, ever go above $1,300 again... Keep staking as the big leap forward is about to happen.

Mon, 05/05/2014 - 08:45 | 4727906 knukles
knukles's picture

Yes, it was MS
Proof that there are no absolute statements

Maniacal laughter

Mon, 05/05/2014 - 08:40 | 4727887 buzzsaw99
buzzsaw99's picture

just remeber the party line comrades, tapering = tightening. bwa ah ah!

Mon, 05/05/2014 - 08:43 | 4727897 wallstreetapost...
wallstreetaposteriori's picture

Wall street knows the market is BS.  Every time each QE has run its cycle, bond yields go lower... not higher as everyone speculates.  Asset managers are selling risk now that the fed is leaving and buying safety... 

Mon, 05/05/2014 - 08:46 | 4727913 buzzsaw99
buzzsaw99's picture

they will rush back in after the anti-taper is announced

Mon, 05/05/2014 - 08:41 | 4727889 The worst trader
The worst trader's picture

Slam the vix slam the gold stocks can never go down!

Mon, 05/05/2014 - 08:41 | 4727891 Stoploss
Stoploss's picture

But, but Goldman told me to sell my gold.........................  LOL!!!

Mon, 05/05/2014 - 08:41 | 4727892 fonzannoon
fonzannoon's picture

it's like Bass said, there are about 100 people who think they own treasuries for each treasury bawnd out there. should just a few percent of those people ask for physical delivery of their bond price will solve everything.

Mon, 05/05/2014 - 08:47 | 4727920 Winston Churchill
Winston Churchill's picture

Sarcasm I know, but an interesting thought none the less.
Maybe those reverse repos are not just window dressing.

Mon, 05/05/2014 - 08:53 | 4727939 fonzannoon
fonzannoon's picture

Dodd Frank kicked in this year and it's forcing banks to significantly up their UST holdings. they are scrambling for supply. Corporate pensions are being forced to up their holdings as well at the same time. It's funny....UST's are literally the phyz gold of the market right now getting slammed for delivery.

Does not help that we had a 0% gdp print and the unemployment rate is imploding downward and it's obvious because everyone is falling out of the workforce.

But the good news is some old bag thinks she sees growth.

Mon, 05/05/2014 - 08:57 | 4727950 LawsofPhysics
LawsofPhysics's picture

Odd how that great for the Fed as well?

Let me be clear, roll the motherfucking guillotines, nothing changes otherwise.

Mon, 05/05/2014 - 09:34 | 4728074 elwind45
elwind45's picture

Stop with the selling red pills to stackers! They are not really up on treasuries much past their yields

Mon, 05/05/2014 - 08:49 | 4727927 Dr. Engali
Dr. Engali's picture

You could say the same thing about silver, gold, stawks, and my dirty underwear.

Mon, 05/05/2014 - 08:53 | 4727938 buzzsaw99
buzzsaw99's picture

you just think you're kidding

Mon, 05/05/2014 - 08:55 | 4727944 fonzannoon
fonzannoon's picture

Buzz what i can't figure out is how the fed is going to reverse the taper and up QE when the unemployment rate is 5.2% and the news is screaming how great the recovery must be.

Mon, 05/05/2014 - 08:57 | 4727951 buzzsaw99
buzzsaw99's picture

There are some things money can't buy. For everything else, there's MasterCard, er, stealth QE.

Mon, 05/05/2014 - 09:01 | 4727958 buzzsaw99
buzzsaw99's picture

Yeah, I just stare at my desk; but it looks like I'm working (tightening). I do that for probably another hour after lunch, too. I'd say in a given week I probably only do about fifteen minutes of real, actual, work (tightening). [/Peter Gibbons]

Mon, 05/05/2014 - 09:03 | 4727966 fonzannoon
fonzannoon's picture

"Michael, we don't have a lot of time on this earth, we weren't meant to spend it this way"

Mon, 05/05/2014 - 09:21 | 4728029 SheepDog-One
SheepDog-One's picture

Upper management written all over you Peter!

Mon, 05/05/2014 - 08:43 | 4727898 Winston Churchill
Winston Churchill's picture

But why no bid up for the dollar ?
Weird.

Mon, 05/05/2014 - 08:49 | 4727911 Matt_Master
Matt_Master's picture

Must be "Belgium" again...aka the Fed via the back door!

Mon, 05/05/2014 - 08:51 | 4727933 monopoly
monopoly's picture

Besides what most of us believe in here, and maybe it is finally our turn, at some point the trade of the year will be short bonds. But I have not shorted a stock or bond in over 3 years. Forgot how to do it. Just the timing......as always.

Mon, 05/05/2014 - 08:55 | 4727947 LawsofPhysics
LawsofPhysics's picture

What part of all paper goes to zero don't people understand?

 

Meh, as usual the death of fiat will be completely "unforeseen".

Off to the FEMA camps with the majority of you...

Mon, 05/05/2014 - 08:54 | 4727941 LawsofPhysics
LawsofPhysics's picture

A choice will soon need to be made.  Keep gold "prices" down or keep treasury "yeilds" down.  Price manipulation of both cannot continue for much longer and maintain reserve currency status.  As it turns out, the dollar really is no better than the Ruble...

Tick tock motherfuckers...

Mon, 05/05/2014 - 09:05 | 4727967 Tinky
Tinky's picture

That strikes me as the key takeaway. Bring it on.

Mon, 05/05/2014 - 09:22 | 4728035 MFL8240
MFL8240's picture

Your forgetting that Beligum is buying all our debt, we dont need to worry about the bond market!

Mon, 05/05/2014 - 09:30 | 4728055 LawsofPhysics
LawsofPhysics's picture

I hardly think that the people in the E.Z. (Or Russia and former Soviet countries) will continue to bailout the U.S. or allow this charade to go on much longer.  Unlike the couch potatos in the U.S.S.A., these folks will go to war (real war, not "police actions" or "liberations").

Mon, 05/05/2014 - 10:23 | 4728232 elwind45
elwind45's picture

THE FEDERAL RESERVE OF NEW YORK takes your income and by way of ownership sends it to Europe to fight their deflation! Its like getting hit with a nailgun equipped with a silenced? Your getting it up the ass but it just feels like constipation

Mon, 05/05/2014 - 11:18 | 4728423 LawsofPhysics
LawsofPhysics's picture

and their time is coming as well.

"Full faith and credit"

Specifically, no more faith means no more credit...

tick tock motherfuckers...

Mon, 05/05/2014 - 08:57 | 4727952 MFL8240
MFL8240's picture

Barberic Relic but, the second there is unrest or uncertainy, out goes the paper dollars in comes the Gold!  

Mon, 05/05/2014 - 10:14 | 4728208 elwind45
elwind45's picture

When did Zimbabwe go on the gold standard

Mon, 05/05/2014 - 08:59 | 4727955 Bernoulli
Bernoulli's picture

I didn't think the news were so bad over the weekend. Everything should be green as always and PMs should be going south.

I don't get it. Can anybody please explain?

Mon, 05/05/2014 - 10:05 | 4728191 elwind45
elwind45's picture

Sunday morning talk or all the important London gold price fixers are getting ready for LIVERPOOL v. CRYSTAL PALACE this day? Which is more important to you? CHINA PMI or margin debt dropping or another BULLTRAP IN GOLD? 10 dollar rally not a good time to liquidate?

Mon, 05/05/2014 - 09:18 | 4728010 foxenburg
foxenburg's picture

Jeez, a one per cent "surge". I can scarcely contain my excitement. 

Mon, 05/05/2014 - 10:39 | 4728262 Tinky
Tinky's picture

Tyler – ban this wet blanket immediately!

Mon, 05/05/2014 - 09:20 | 4728011 MFL8240
MFL8240's picture

Exactly as crafted by the Federal Reserve and their friends on Wall Street!  Belgium can only absorb 100% of their GDP in US Treasuries’! Lol!!!

Mon, 05/05/2014 - 09:19 | 4728018 SheepDog-One
SheepDog-One's picture

Wait....so now U.S. stawks and Russian stawks are 'about the same' and joined at the hip move for move?

Somebody stop this stupid ride I want to get off.

Mon, 05/05/2014 - 09:52 | 4728150 elwind45
elwind45's picture

No absolutes! CHINA HAS TO BUY ANOTHER CURRENCY TO SQUARE ITS BOOKS? I cant see stacking until the RMB become a real monies?

Mon, 05/05/2014 - 10:48 | 4728320 I Write Code
I Write Code's picture

The Bernank just neutralized his position as best he could before handing over the throne to The Yellen.  The Yellen has apparently decided she could do better, so she is retracing about a third of The Bernank's move, and actually attempting to further suppress volatility.

That is all.

Mon, 05/05/2014 - 11:02 | 4728363 Bemused Observer
Bemused Observer's picture

Go ahead...keep that gold down! The lower it goes, the less careful people are, which means I get to buy gold for next to nothing! Got another 20+ grams of 14k this weekend, for 50 cents. 50cents!! With declining prices in the news, and the "Weekend at Bernie's" stock market pulling them in, no one has gold on the mind...they're tossing that old jewelry box 'o bling after giving it a quick look-over, instead of 'loupeing' everything like they were when gold was near 2 grand.

The price of gold right now is one of the FEW bright spots for me today. One of the few opportunities to experience a little victory...and replenish my stock after selling so much at the highs. That was one sweet run, THOUSANDS in profit on a pile of scrap I doubt cost me more than 50 dollars total...keep up the good work, boys! Beat those prices into the dirt!

Do NOT follow this link or you will be banned from the site!