10Y Treasury Yield Drops Back Below 2.5%

Tyler Durden's picture




 

As US equities put in their ubiquitous v-shaped recovery from any opening weakness, Treasury yields are pushing the lows of the day. 10Y Yields are back below 2.5% - the lowest in 7 weeks. AUDJPY is fully in charge of equity levitation today so far (though Russell 2000 and Biotech names mostly are notably lower and not bouncing as exuberantly as Trannies and the Dow).

10Y yields drop to fresh lows under 2.5%

 

As AUDJPY lifts stocks magically...

 

Nothing to see here

 

Charts: Bloomberg

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Thu, 07/17/2014 - 09:53 | 4967115 tarsubil
tarsubil's picture

Can't wait for the headline, "10Y Treasury Yield Drops Back Below 0.0%."

Thu, 07/17/2014 - 09:57 | 4967139 Buckaroo Banzai
Buckaroo Banzai's picture

Remember when interest rates used to reflect the time value of money?

Yeah, me neither.

Thu, 07/17/2014 - 10:02 | 4967171 LawsofPhysics
LawsofPhysics's picture

Well, I for one remember 8% CDs.  Sorry you missed that, good times...

 

Any inflation without WAGE inflation is the kiss of death for any economy.

 

Now consider that statement while looking at the current velocity of money, scary shit.

Thu, 07/17/2014 - 10:22 | 4967261 OC Sure
OC Sure's picture

 

 

"Any inflation without WAGE inflation is the kiss of death for any economy."

Without the inflation of counterfeit, there could be an inflation of productive work and therefore no inflation of wages woud be necessary since there would instead be an increased purchasing power of those wages.

Thu, 07/17/2014 - 10:26 | 4967273 Dr. Richard Head
Dr. Richard Head's picture

You speak of nonsense.  Fiat Fucking Fantasy is Fantastic. /sarc

Fiat currency is stolen property.  Plain and simple - https://www.youtube.com/watch?v=D96HjDbTs1s

Thu, 07/17/2014 - 10:31 | 4967301 LawsofPhysics
LawsofPhysics's picture

Correct, more bullshit paper script/promises will only make things much, much worse in an exponential fashion.

Thu, 07/17/2014 - 10:29 | 4967294 LawsofPhysics
LawsofPhysics's picture

Bullshit.  This not the 70's.  There is no increase or inflation of productive work (creating more financial "products" of no real value is not productive work asshat) without an increase in the calories available for consumption.

7+ billion (and growing) all competing for a better quality of life and the available calories that make that possible.  Unless those unfunded liabilities are decreased, the standard of living for humanity (but especially Americans) has only one direction to go.

Thu, 07/17/2014 - 10:13 | 4967176 Al Huxley
Al Huxley's picture

Anybody with a house can play the same game the FIs are - refinance or get a big-ass HELOC, and lever up in the market!  Of course, they get inside info, and if they fuck up, the government will make them whole, whereas if you fuck up, well, capitalist discipline for you, but other than that different risk profile, it's the same game - level playing field!

Thu, 07/17/2014 - 10:12 | 4967209 firstdivision
firstdivision's picture

L-O-Fucking-L fake economic data point of the day goes to.....http://bloomberg.econoday.com/byshoweventfull.asp?fid=461425&cust=bloomb...

Thu, 07/17/2014 - 09:52 | 4967116 madbraz
madbraz's picture

Stay calm, the Philly Fed "survey" is on the way to save the day.  Aaah, it must be good to be a banker and have them FED people behind you all the way...

Thu, 07/17/2014 - 10:01 | 4967165 madbraz
madbraz's picture

Thank you, Philly Fed.  So nice to know that you are just one phone call away...

Thu, 07/17/2014 - 10:04 | 4967178 madbraz
madbraz's picture

I am coming to an undisputed conclusion that all surveys and economic data printed are just means to achieve the goal of a certain algo/HFT's owners.  By now it is just too obvious.

 

The levels of corruption are probably higher than they were in the 1920s.

Thu, 07/17/2014 - 10:13 | 4967212 NOTaREALmerican
NOTaREALmerican's picture

It could be that people creating these summaries are just measuring worthless data.   But the expression "Generals always fight the last war" applies to almost everything. 

Thu, 07/17/2014 - 09:54 | 4967121 philipat
philipat's picture

Unmanipulated "Markets".....

Thu, 07/17/2014 - 09:55 | 4967129 Al Huxley
Al Huxley's picture

Rising bonds, rising stocks, as long as you're not an ex-Microsoft employee, what's not to love?

Thu, 07/17/2014 - 09:56 | 4967131 btb2010
btb2010's picture

First the FED will orchestrate the economic deflationary collapse then step in, once again, to save the day with a 'PRINT' that will echo around the world

Thu, 07/17/2014 - 09:56 | 4967134 LawsofPhysics
LawsofPhysics's picture

This despite threats to impose "exit fees"

< shocker >

Go ahead, raise rates bitch, I double dog dare you...

 

Thu, 07/17/2014 - 10:05 | 4967184 pods
pods's picture

Oh hell, eyebleach please!  I just saw Mr. Yellen with his tongue stuck to a pole!

pods

Thu, 07/17/2014 - 10:17 | 4967232 The Most Intere...
The Most Interesting Frog in the World's picture

Whose pole?

Thu, 07/17/2014 - 10:23 | 4967267 CrimsonAvenger
CrimsonAvenger's picture

A bankster pole, to be specific. Which is how he got the job in the first place.

Thu, 07/17/2014 - 09:58 | 4967135 Dr. Engali
Dr. Engali's picture

Like Japan we will be below 1% before this is all over with. Open that MyRa and load up now bitchez!

Thu, 07/17/2014 - 09:59 | 4967152 venturen
venturen's picture

Over?...there is no over...this is a toilet bowl econmy. That sucking sounds isn't your imagination. 

Thu, 07/17/2014 - 10:03 | 4967170 Dr. Engali
Dr. Engali's picture

Yes there will be an over. When? I have no idea, but math never lies. With 100 trillion in unfunded liabilities the system will collapse.

Thu, 07/17/2014 - 10:10 | 4967201 NidStyles
NidStyles's picture

220 Trillion actually...

Thu, 07/17/2014 - 10:15 | 4967225 NOTaREALmerican
NOTaREALmerican's picture

Like General Patton said:  let the enemy worry about your liabilities. 

Thu, 07/17/2014 - 09:56 | 4967136 NoDebt
NoDebt's picture

I'll notify my Granny she's gotta switch back to Alpo next quarter.

Thu, 07/17/2014 - 09:57 | 4967141 Dr. Engali
Dr. Engali's picture

Alpo? She's lucky eating that there gourmet food.

Thu, 07/17/2014 - 09:59 | 4967153 NoDebt
NoDebt's picture

Well, in the 2.75-ish range she upgrades to Friskies Gourmet Cat Dinner, but when yields fall below 2.5 she's gotta switch back to dog food.

You ever tasted cat food?  It's not half bad.  Almost like people food.  You'll see what I mean some day.

Thu, 07/17/2014 - 10:00 | 4967150 Grande Tetons
Grande Tetons's picture

I am giving my Granny a half and half mixture of Alpo and sawdust. She seems ok with it. 

 

Thu, 07/17/2014 - 10:02 | 4967168 NoDebt
NoDebt's picture

It's good for you.  Granny says it's got lots of "roughage" in it.  That's old-people-speak for fiber.

Thu, 07/17/2014 - 10:04 | 4967174 Dr. Engali
Dr. Engali's picture

Lol

Thu, 07/17/2014 - 10:16 | 4967237 jbvtme
jbvtme's picture

if only i could be sure the alpo mix was not gmo...

Thu, 07/17/2014 - 10:28 | 4967250 Dr. Richard Head
Dr. Richard Head's picture

My Gramama, who lived through the Great Depression, lived off of hotdogs well into her 80s.  My family down south, who robbed and pillaged (living in huge mansions in on the ICW in South Florida, Arizona, and Ohio.  Jaguars out the ass, etc) from their IPO for years while never producing or selling product number 1, were aghast at her eating habits.  She wasn't a thief and paid the price of honesty and morality.  The realities of being frugal in her eating was ingrained in her at a young age after seeing the desperation of banker induced scarcity, while the IPO pirates lived like kings.  I've seen both sides of these atrocities.

At the end of the day, Clara (Great Depression Cooking on YouTube) will be a star as the people will eventually have to turn away from sports and Kim K's ass and titties and actually learn something that will be forced upon them.  So sad.

Clara is great though - https://www.youtube.com/user/DepressionCooking

Thu, 07/17/2014 - 11:12 | 4967466 thecoloredsky
thecoloredsky's picture
https://shine.yahoo.com/im-saving-money-cooking-great-depression-1738000... Back in 2001 when I still had a full household of kids, my monthly grocery expenses per person was a mere $105. Last year, our costs averaged out to $242 a month per person. Although economists assure us that food prices haven't risen much in the past decade (see chart at businessinsider.com) my old budget tells an entirely different story. I might not understand New Math, but even I can see that these numbers reflect an 113% increase in price over the past 10 years.
Thu, 07/17/2014 - 09:58 | 4967145 TabakLover
TabakLover's picture

BTFD crowd once again congratulating themselves on what geniuses they are.   Unreal.

Thu, 07/17/2014 - 09:59 | 4967154 spastic_colon
spastic_colon's picture

you forgot the ubiquitous VIX hammer

Thu, 07/17/2014 - 10:00 | 4967155 rwe2late
rwe2late's picture

buy the dip !

:) 

Thu, 07/17/2014 - 10:00 | 4967158 buzzsaw99
buzzsaw99's picture

bu, bu, but the taper! BWA HA HA HA!!!

Thu, 07/17/2014 - 10:01 | 4967162 CitizenPete
CitizenPete's picture

Long Russian / Ukranian surplus ammo

Thu, 07/17/2014 - 10:02 | 4967169 jubber
jubber's picture

they Dow bounces 100 fucking points once again to yet another new ATH on the shittiest of news, Bunds at an ATL , Geopolitical carnage everywhere, and on the cusp of Cold War 2

Thu, 07/17/2014 - 10:09 | 4967198 NOTaREALmerican
NOTaREALmerican's picture

Bad news is good for stocks because it means things can only get better.  Ya gotta think like a pathological optimist. 

Thu, 07/17/2014 - 10:10 | 4967199 NOTaREALmerican
NOTaREALmerican's picture

Bad news is good for stocks because it means things can only get better.  Ya gotta think like a pathological optimist. 

Thu, 07/17/2014 - 10:13 | 4967205 khakuda
khakuda's picture

It's a magical world, isn't it?  Just last night, after winning powerball, I rode my unicorn over to Cinderalla's house and she couldn't keep her hands off me. 

Thu, 07/17/2014 - 10:20 | 4967253 spastic_colon
spastic_colon's picture

overlay IBM

Thu, 07/17/2014 - 10:03 | 4967173 GFORCE
GFORCE's picture

Trying to make sense of the world with inter-market correlations is a dangerous game.

Thu, 07/17/2014 - 10:09 | 4967197 LawsofPhysics
LawsofPhysics's picture

Do not try and predict the "market" moves, that's impossible, only try and recognize the truth, that there is no market for true price discovery.

Thu, 07/17/2014 - 10:08 | 4967194 NOTaREALmerican
NOTaREALmerican's picture

Is there a cat-food vs 10y graph some place?    I'm thinking there might be some arbitrage opportunists here. 

Thu, 07/17/2014 - 10:16 | 4967227 ejmoosa
ejmoosa's picture

If I were a foreign entity planning to screw the US, I'd be buying enough treasuries to dump them all at once when they least expect it.  Sure, I might take a loss,  

 

But the US would be crushed.

 

Thu, 07/17/2014 - 10:20 | 4967256 LawsofPhysics
LawsofPhysics's picture

That is why the Fed, is and must buy all of the new issuance, period. (via Belgium or otherwise)

Thu, 07/17/2014 - 10:20 | 4967254 The Most Intere...
The Most Interesting Frog in the World's picture

Some day the Fed will be able to unload their whole wad at .6% and a huge gain.

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