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Treasury Yields Are Tumbling As Stocks Push For Record Highs

Tyler Durden's picture




 

Treasury yields are tumbling... and so of course US equity prices are soaring as the S&P presses back up toward 1,900 and its all-time record highs. USDJPY is not supporting this spike so it's clear what is... VIX recovered its HP-spike from last night and that was all the momo ignition needed on a thin day to lift stocks ... This magical no volume ramp has lifted the Dow into positive territory for the month and year.

 

VIX running the show - coz who needs protection heading into the Ukraine elections...

 

Bonds ain't buying it....

 

And nor is JPY

 

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Fri, 05/23/2014 - 10:27 | 4788393 MFL8240
MFL8240's picture

They continue to put lipstick on the pig!

Fri, 05/23/2014 - 10:27 | 4788395 fonzannoon
fonzannoon's picture

Stocks up, Bonds up, gold down. It's Friday bitchez, everyone crack a beer and take the rest of the day off.

Fri, 05/23/2014 - 10:29 | 4788401 Hippocratic Oaf
Hippocratic Oaf's picture

Thanks 

I think I will

Just keep hitting the buy button on a low volume day

Gotta keep them sheep a grinnin'

Fri, 05/23/2014 - 10:32 | 4788406 fonzannoon
fonzannoon's picture

Here is some memorial day humor for you that was sent to me. All this time I had been spelling her name wrong. I feel like such an idiot.

https://pbs.twimg.com/media/Bno-EHLCUAEG9L-.jpg:large

Fri, 05/23/2014 - 10:43 | 4788442 Dr. Engali
Dr. Engali's picture

I have a client luncheon and then I'm out of here.

Fri, 05/23/2014 - 10:57 | 4788502 pods
pods's picture

Must be nice Doc, I have to stuff 15 lbs of shit into a 5 lb sack today to get ready for vacation .

pods

Fri, 05/23/2014 - 11:01 | 4788521 Rainman
Rainman's picture

I'm taking the mother in law to the cemetery...unfortunately, I can't leave her there.

Fri, 05/23/2014 - 11:05 | 4788545 fonzannoon
fonzannoon's picture

LOL

Fri, 05/23/2014 - 10:28 | 4788396 FieldingMellish
FieldingMellish's picture

Such unriggedness.

Fri, 05/23/2014 - 10:28 | 4788399 Stoploss
Stoploss's picture

Aw shit, go ahead an take Monday too.

Fri, 05/23/2014 - 10:30 | 4788400 JustObserving
JustObserving's picture

Inflation is completely controlled even as US debt and unfunded liabilities hit $147 trillion ($1,260,000 per taxpayer) and rising at $8 trillion per year ($69,000 per taxpayer per year).  Buy Treasuries - what could possibly go wrong?

Forward.

Fri, 05/23/2014 - 10:36 | 4788418 OC Sure
OC Sure's picture

 

 

Inflation of what? Money or Counterfeit? ...Inflation of counterfeit.

Fri, 05/23/2014 - 10:30 | 4788402 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

They keep smashing the VIX lower and lower but it's as if the S/P has hit stall speed. No one is left or able to buy. They'll probably get it to 1900 through lots of brute force eventually today.

Fri, 05/23/2014 - 10:46 | 4788457 SheepDog-One
SheepDog-One's picture

Soon they'll be driving the vix into negative territory.

Fri, 05/23/2014 - 10:34 | 4788412 Unknown Poster
Unknown Poster's picture

There is a little less exuberance in small caps. IWM:TLT - SharpCharts Workbench - StockCharts.com

Fri, 05/23/2014 - 10:36 | 4788417 pound the vix
pound the vix's picture

Is there noone left willing to short this market??  are they all broke like me?

Fri, 05/23/2014 - 10:38 | 4788426 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

oh there are legions of people short, waiting and losing money. the algos keep buying on low volume.

Fri, 05/23/2014 - 10:39 | 4788429 CrashisOptimistic
CrashisOptimistic's picture

Stop

Watching

The

"Market".

There is no market.  There is only HFT.  How can there be a market when HFT is 60% of volume.

Plan your farmland buy.  It requires you to leave your computer.  Gather yourself for that big event.

Fri, 05/23/2014 - 10:38 | 4788424 PlusTic
PlusTic's picture

they can't allow the fakery to end...it would signal the truth and cause riots in the streets...so get used to new highs in stocks/lows in vix...the facade cannot be unveiled

Fri, 05/23/2014 - 10:41 | 4788436 SheepDog-One
SheepDog-One's picture

They may just be reaching the point where they say 'Fuck it, bring on the riots', just heard DHS central bankster special forces just bought another 45 millions rounds of ammo. 'For them terrorists' I'm sure.

Fri, 05/23/2014 - 14:17 | 4789296 Panafrican Funk...
Panafrican Funktron Robot's picture

As long as smartphones, televisions, and junk food remain plentiful, there will be no riots.

Fri, 05/23/2014 - 10:38 | 4788425 SheepDog-One
SheepDog-One's picture

Yay! The shitshow must go on! Holiday! 'Summer drivin and consumin season'! Yay!

Fri, 05/23/2014 - 10:39 | 4788431 buzzsaw99
buzzsaw99's picture

On the floor of Tokyo
Or down in London town to go, go
With the record selection
And the mirror's reflection
I'm dancing with myself

When there's no-one else in sight
In the crowded lonely night
Well I wait so long
For my love vibration
And I'm dancing with myself

Oh dancing with myself
Oh dancing with myself
Well there's nothing to lose
And there's nothing to prove
I'll be dancing with myself...

[/Billy Idol]

Fri, 05/23/2014 - 10:40 | 4788432 LawsofPhysics
LawsofPhysics's picture

In the "new normal" everything goes up, all the time.

 

(people talking about "fundamentals" coming back to the market are either insiders, paid shills, or just plain stupid fucks)

Fri, 05/23/2014 - 10:41 | 4788437 Dr. Engali
Dr. Engali's picture

Just wait until people start talking about their portfolios at the family picnics this weekend. The sheep will be lining up to get shorn out of envy.

Fri, 05/23/2014 - 10:49 | 4788469 buzzsaw99
buzzsaw99's picture

what's coming will be not so pleasant as a shearing methinks

Fri, 05/23/2014 - 10:42 | 4788441 SheepDog-One
SheepDog-One's picture

Fun-derp-mentals!

Fri, 05/23/2014 - 10:51 | 4788473 TheRideNeverEnds
TheRideNeverEnds's picture

FED balance sheet points to S&P over 2000 by year end.  Gotta buy em here; we are going higher.

 

 

Fri, 05/23/2014 - 10:57 | 4788504 SheepDog-One
SheepDog-One's picture

Oh well by all means sir, after you...go ahead and buy your stawks!

Fri, 05/23/2014 - 14:20 | 4789312 Panafrican Funk...
Panafrican Funktron Robot's picture

VXX puts are the new long.

Fri, 05/23/2014 - 10:51 | 4788474 flow5
flow5's picture

It's all over.  A depression's a good probability since the Fed pays the banks not to lend.

Fri, 05/23/2014 - 10:57 | 4788503 Spungo
Spungo's picture

The cycle goes like this:
1 - muppets sell at bottom of cycle; smart people are buying
2 - a few years of moderate stock gains
3 - muppets start buying again near the top; smart people sell to them
4 - smart people are still partially invested, but mostly sit in cash (on the sidelines)
5 - market appears to be topping
6 - smart people start shorting momo stocks and buying bonds because the highest interest rate generally happens near the stock market top
7 - stocks rise higher on lower volume as muppets trade amongst each other
8 - black swan event
9 - crash
10 - go to step 1

Fri, 05/23/2014 - 10:58 | 4788511 pound the vix
pound the vix's picture

We constantly hear about the risk departments at these banks and brokerages.  How is it that they are not screaming at the traders saying "how can you be long the market on record margin and not even own volotility protection by owning vix options"

 

Will this be the next scandle Jamie Dimon needs to hide?

Fri, 05/23/2014 - 12:12 | 4788877 Spungo
Spungo's picture

I'm guessing they ARE hedged to the VIX. That's why the VIX is manipulated down. It allows one to buy it at a discount. Same deal as gold. Drive price down, buy lots.

Fri, 05/23/2014 - 11:07 | 4788555 playnstocks
playnstocks's picture

My trading program says BTFD and BTFATH symbols are invalid.. WTF?

I keep reading that these are good trades but I cant get a quote. WTF?

Fri, 05/23/2014 - 11:07 | 4788559 monopoly
monopoly's picture

This is all so ridiculous and I am glad I am not a part of it. Never short anymore, have the quality miners I want, physical stashed and refuse to buy these stocks at these idiot prices.

HPQ confirms tech is in the toilet and up we go. Dicks confirms sports, golf, hunting, are in a definite downtrend and stocks are up. Walmart posts lower earnings, just company specific, right. Whole foods drops 20% because we cannot afford to pay these prices for "organic" and competition heating up. Buy em.

Sears pukes, Best Buy pukes. Buy retail. Oil over 104. Gas over 4 and bread approaching 5 bucks. Nope, no inflation anywhere. 90 million Americans are not working and 20% of families have 0 persons employed. For those of us over 60 who did it "right", saved and tried to have a few pennies as we get older. Tough. .25% on my savings account but Lloyd and the rest of the scum are buying 10 million dollar retreats.

And lets keep paying all those brilliant sports professionals millions of dollars to play. Well, at least we have a govt. that cares about its people and does little to enhance their own wealth. Ha. And an Administration that is careful spending, and does not abuse taxpayer dollars. What bullshit.

I know we are all the choir. But it just getting old. And the past year + I have felt stupid in my PM investments. But this too shall pass. See ya all Tuesday. Have a good holiday weekend, remember those who gave ALL for this once great country..... and thank you Zero Hedge.

Fri, 05/23/2014 - 11:07 | 4788561 madcows
madcows's picture

let me know when it gets below 2.

Fri, 05/23/2014 - 11:35 | 4788689 Yen Cross
Yen Cross's picture

     I've noticed the usd/jpy correlation to the 10year ust has been breaking down. Even as yields only slightly rose over the last week usd/jpy bounced. Also the trade balance has widened out even MOAR.

     This is troubling because it may be showing signs the carry trade is breaking down. When you factor in the recent yen strength was partially due to the massive increase in this number along with the drop in yields.

  16:50       JPY         Foreign Bonds Buying     (1,414.3B)           345.7B    

 Explanation:

Foreign Bonds Buying number measures the flow from the public sector excluding Bank of Japan. The Net data shows the difference of capital inflow and outflow. A positive difference indicates net sales of foreign securities by residents (capital inflow), and a negative difference indicates net purchases of foreign securities by residents (capital outflow). A higher than expected number should be taken as positive to the JPY, while a lower than expected number as negative.
Fri, 05/23/2014 - 13:01 | 4789059 disabledvet
disabledvet's picture

Treasuries don't just rally. Everything else might be bullshit...but those assets are not.

The Yen might be on the verge of collapsing. Anyone long that thing I think is crazy. Already interest rates in "two speed Europe" have spread dramatically wider. If Putin has the balls to go toe to toe with the West over Ukraine you really could see a Wild West show both in the East and in North Africa.

http://www.youtube.com/watch?v=D_tt83itYA8

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