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Treasury Yields Collapse, 30Y Tests Taper Tantrum Lows

Submitted by Tyler Durden on 10/15/2014 08:55 -0400

Treasury yields are collapsing. 30Y yields are now at Taper Tantrum lows and the rest of the complex is catching down rapidly...

Bond yield roundtrip...

As rates collapse following retail sales, PPI and Empire Fed

as the short-end literally crashes...

And European negative yuields are moving out the curve...

Charts: Bloomberg

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Wed, 10/15/2014 - 08:57 | 5333205 Aknownymouse

Good. This is what the FED wanted. No???

Wed, 10/15/2014 - 08:58 | 5333210 Manthong

I’ve got a sneaking feeling the TD’s are having field day this morning.

Wed, 10/15/2014 - 09:04 | 5333254 GetZeeGold

Oh crap.....consequences!

Wed, 10/15/2014 - 09:19 | 5333344 eclectic syncretist

FUC*IN A! Is the world waking up from the dream stupor it's been in for the past six years?

Wed, 10/15/2014 - 09:22 | 5333373 LULZBank

Im getting dizzy. Will it happen today?

Wed, 10/15/2014 - 09:34 | 5333442 Manthong

My guess would be they will let it down to the high 1700's and then buy it back out.

Wed, 10/15/2014 - 09:35 | 5333451 new game

hedge funds are getting hammered,haha...

Wed, 10/15/2014 - 09:36 | 5333482 Richard Chesler

Mr. Yellen to the white courtesy phone.

Wed, 10/15/2014 - 09:40 | 5333518 Headbanger

And WHAT DID I TELL YOU MOOKS!!?

http://www.zerohedge.com/news/2014-10-13/prepare-another-whiplashy-sessi...

AND SUCK IT AGAIN FONZ!

Wed, 10/15/2014 - 09:59 | 5333694 Arius

false alarm ... a buying opportunity!

Wed, 10/15/2014 - 09:42 | 5333532 HobbyFarmer

even martin armstrong is beginning to talk up gold on his site as a place for people to park money when confidence in gov't debt collapses.

things are getting that serious that he's ending his fued with gold-bugs???

Wed, 10/15/2014 - 09:36 | 5333483 Dr. Richard Head

So is this a flight to "safety"?

Wed, 10/15/2014 - 09:33 | 5333443 new game

we can only hope, saddle up and don't forget the wheelgun...

Wed, 10/15/2014 - 09:34 | 5333445 eclectic syncretist

That's a pretty swift kick in the nuts there at the open. Ouch.

Wed, 10/15/2014 - 09:07 | 5333274 zorba THE GREEK

S&P futures -23, it's going to be a bloodbath today. We should find out today how

much of the market is the Fed PPT willing to buy. No one else will be buying today.

Wed, 10/15/2014 - 09:20 | 5333363 disabledvet

I wouldn't overstate the "crash." The value of debt is soaring not crashing.

Wed, 10/15/2014 - 09:36 | 5333479 Bangin7GramRocks

All the Tylers(even the rich ones who cashed out and fuck all day on private islands) are shooting Peter North quality jizz ropes this morning!

Wed, 10/15/2014 - 09:44 | 5333542 froze25

Don't you be talking about the "Shaft"

Wed, 10/15/2014 - 09:00 | 5333231 zorba THE GREEK

The sky is darkening with black swans, it shouldn't be long before one lands,

to be followed by many others.

Wed, 10/15/2014 - 09:04 | 5333256 astoriajoe

or they all shit on us.

Wed, 10/15/2014 - 09:32 | 5333422 A82EBA

oh the visual

Wed, 10/15/2014 - 09:16 | 5333327 SoDamnMad

Black swan paratroopers. Stand Up, Hook Up, Check Your Equipment. STAND IN THE DOOR. Go, Go, Go

Wed, 10/15/2014 - 09:28 | 5333410 eclectic syncretist

Black swans? More like Ringwraiths on Fell Beasts.

Wed, 10/15/2014 - 09:36 | 5333476 new game

liquidations, stops and fun for the sideline types,ha fucking ha....

Wed, 10/15/2014 - 08:57 | 5333206 Dostojevskij

aaaaand it's GONE!

https://www.youtube.com/watch?v=-DT7bX-B1Mg

Wed, 10/15/2014 - 08:59 | 5333218 semperfi

QE4 on the way signal

Wed, 10/15/2014 - 09:22 | 5333369 Tanz der Lemminge

QE4 announcement would be a disaster.

Would be an open admission that the FED is clueless, their plans have failed, and the US economy is in the crapper

Wed, 10/15/2014 - 09:24 | 5333381 eclectic syncretist

Yeah! A few trillion Federal Reserve Notes printed up should stop Ebola and get oil back up over $100 per barrel where everyone would be happy. /sarc

I suggest getting out of the market. Get out for keeps right now. Protect your savings, in a money market account if you have to, or even consider taking a penalty to get it out and into your hands personally, lest it be swept away with the rest of Wall Streets illusionary money.

Wed, 10/15/2014 - 09:31 | 5333416 LawsofPhysics

Perhaps, it is strange how, even in a depression, the physical paper note/money has added value. Something about fraud and possession comes to mind.

Wed, 10/15/2014 - 09:37 | 5333481 eclectic syncretist

Yes, it wouldn't take to many more days like this one is shaping up to be before all trust is lost. It certainly would not be the first time it's happened, and we obviously have people in leadership positions all over the planet right now who can't be trusted.

Wed, 10/15/2014 - 08:58 | 5333221 SilverIsMoney

Die you fucking Zombie DIE!!!!!

Wed, 10/15/2014 - 08:58 | 5333222 SilverIsMoney

Die you fucking Zombie DIE!!!!!

Wed, 10/15/2014 - 09:00 | 5333237 madcows

I up voted you twice. Question, how do you kill a zombie bank?

Wed, 10/15/2014 - 09:11 | 5333310 SilverIsMoney

I've been trying to find out for 6 years it seems that telling them QE is ending always starts the process but never quite finishes it. Maybe this time QE 4 or 5 or whatever will finally do the trick.

6 years of printing, tripling the monetary base, none of it worked and now they're just going to keep doing it. When are the people finally going to have enough and finally start killing the zombies themselves.

Wed, 10/15/2014 - 09:16 | 5333335 Obchelli

Where's Hilthencrap when you need him? Preparing "I think Fed is going to do QE4 sooner then later" remark...

Wed, 10/15/2014 - 09:28 | 5333407 madcows

I agree, Sooner(QE4), and then, again(QE5), later.

Wed, 10/15/2014 - 09:39 | 5333500 eclectic syncretist

Hey! Did you hear that? Neither did I. I think the music just stopped and we're a couple chairs short.

Wed, 10/15/2014 - 08:59 | 5333233 madcows

Let's go Team, get her below 2 again.

Wed, 10/15/2014 - 09:01 | 5333247 Drummond

Sorry to be a pain chaps. Is a taper tantrum related to a risk of deflation? Can someone explain please?

Wed, 10/15/2014 - 09:03 | 5333255 ABB

Good!!

So far the only reason the inflation is not picking up is because the liquidity was channeled to T's instead of the S (street). Helping the TBTF to slowly but surely improving their capitalization.

Now that they dont have much territory left, lets see how will the inflation figures being manupilated? Not to mention if the demand to T's will drop with these very very low yields.

I am ready to learn new things. Don't you????

Wed, 10/15/2014 - 09:32 | 5333428 Drummond

And even if they had of targeted QE1 directly at 'the street'? It would still have been over for them? The damage was done pre 2008 right?

Wed, 10/15/2014 - 09:04 | 5333260 Seasmoke

I haven't checked yet....So Gold must be over $10,000 USD this morning ????

Wed, 10/15/2014 - 09:19 | 5333358 GetZeeGold

Shhh....they're so busy watching gold...I don't think they know about this yet.

Wed, 10/15/2014 - 09:26 | 5333390 Took Red Pill

Gold is up only slightly so far. It will only take off when they let it or lose total control

Wed, 10/15/2014 - 09:28 | 5333406 LawsofPhysics

Still far more paper contracts out there. still plenty of room for manipulation. Nothing changes until all parties with a claim demand physical... - fixed.

Wed, 10/15/2014 - 09:34 | 5333446 A82EBA

gold needs to break 1240

Wed, 10/15/2014 - 09:42 | 5333529 Took Red Pill

just did, now at 1249

Wed, 10/15/2014 - 09:43 | 5333541 Took Red Pill

as the Dow plummets! Down 342 already!

Wed, 10/15/2014 - 09:46 | 5333575 fuu

1246.80

Wed, 10/15/2014 - 09:05 | 5333261 kaa1016

I like Jeff Gundlach and respect his views but yesterday when he said that stocks and the 10 year hit bottom, I figured that he would be proven wrong very quickly. What a move in treasuries this morning. Get ready for some liquidations in stocks because of the margin calls that are coming.

Wed, 10/15/2014 - 09:10 | 5333293 Slowdrip

What happened? Thought the PPT was back on the saddle.....

Wed, 10/15/2014 - 09:11 | 5333294 monopoly

Well it is about time. Since when is the Piper never paid. The piper is always paid. Long, long way to go. And yet, I am still afraid to short this market. All Yellen has to do as she sits in her rocking chair is say the word QE and stocks rally hard, gold goes ballistic. Shortly after that, I will be shorting everything I can outside of commodities, and be very long gold.

Bring it on Grandma, we are ready here.

Wed, 10/15/2014 - 09:10 | 5333296 wagthetails

oh c'mon, this is just a "health and natural pullback"... lower oil price mean more money in consumers pocket, lower interest rates mean higher home prices....with so much positive news, i'm amazed the market is down at all.

Wed, 10/15/2014 - 09:11 | 5333299 Silver Bullet

Look out below!

Wed, 10/15/2014 - 09:12 | 5333308 Keltner Channel Surf

"Yields Collapse" seems a glass-half-empty stance :)

On a positive note, prices of bonds, where many retail investors (though, unfortunately, very few hedge funds) crowded into last week, are spiking higher.

Wed, 10/15/2014 - 09:13 | 5333312 firstdivision

So ummm something is not jiving here http://bloomberg.econoday.com/byshoweventfull.asp?fid=460619&cust=bloomberg-us&year=2014&lid=0&prev=/byweek.asp#top

Wed, 10/15/2014 - 10:02 | 5333716 RockyRacoon

It's the International Council of Shopping Centers -- you would expect "bad news"? Like the NAR to report that it's NOT a good time to buy a house?

Wed, 10/15/2014 - 09:14 | 5333314 monopoly

Ahh, true wag, but almost 20 states have many who depend on their jobs in the oil industry. And if this continues those jobs go away and we move back to square one. And, with all the debt we have, who is going to spend more money at BBY or JCP. Just not gonna happen.

Wed, 10/15/2014 - 09:50 | 5333611 A82EBA

Maybe the traffic in Houston will thin out

Wed, 10/15/2014 - 09:15 | 5333321 NEOSERF

Perhaps we could start a list of the things that are going well for the world and the US specifically?

1. Obama is a lame duck

2. Congress can't do too much more damage gridlocked

3. A gallon of gas might break the $3 barrier

that's all i have right now...

Wed, 10/15/2014 - 09:26 | 5333391 LawsofPhysics

Well, I for one will certainly not complain about lower diesel prices. However, I have been around long enough and have been doing business with people in Russia for 20+ years, so I also know how this works. The "official" price will be low, but almost never available. (one line for oligarchs and another for Joe six-pack) My Russian friends know this drill all too well as they have been dealing with a corrupt government and price controls their who lives. America is simply evolving to the same endpoint now. Sad.

Wed, 10/15/2014 - 09:56 | 5333675 roadhazard

butt, butt, Putin.

Wed, 10/15/2014 - 09:17 | 5333336 Ness.

Let's place this in context. Overnight the ESZ4 (S&P futures) were down 17.5. After an absolutely horrible data set this morning in the US , the ES is only down 20.5. 3 fucking ticks. Bonds are telling a much different (and spooky) story.

K-Hen has his work cut out for him today but when you're buying futures with monopoly money - who gives a fuck, right?

Wed, 10/15/2014 - 09:18 | 5333346 Slowdrip

The phones are a ringnnnn...

Wed, 10/15/2014 - 09:22 | 5333364 GetZeeGold

Just get me out of my 401K!

Dammit.....I can't get through!

Wed, 10/15/2014 - 09:19 | 5333354 youngman

My bank should be doubling my savings account rate right....lol.....death to savers..

Wed, 10/15/2014 - 09:21 | 5333367 madbraz

Attention Bank of America employee Mcneil Curry - please proceed to the Human Resources department immediately, leave behind your laptop and funky "short treasury" charts.

Wed, 10/15/2014 - 09:23 | 5333384 nink

tick tick tick

Wed, 10/15/2014 - 09:27 | 5333396 ekm1

And DXY collapsed also, which means NY Fed is providing dollars to IMPORTANT players needing them to avoid panic selling due to margin calls

Wed, 10/15/2014 - 10:06 | 5333768 fuu

You mentioned a week ago that it is not possible for the dollar and dollar denominated assets to drop simultaneously, unless someone is tampering with computers. This morning we are seeing dollar denominated assets and the dollar tanking simultaneously.

So is this happening or is it fake?

http://www.zerohedge.com/news/2014-10-07/stocks-dollar-bond-yields-tumbl...

Wed, 10/15/2014 - 12:04 | 5334484 ekm1

dislocation, computer tampering

Wed, 10/15/2014 - 09:28 | 5333401 Peter Pan

The world is having a heart attack and the price of gold is showing just a gentle arrhythmia. It appears that they will be hammering gold into the shape they want until the big bang happens.

Wed, 10/15/2014 - 09:32 | 5333423 forrestdweller

Time for some distraction; a new war, a dictator with chenpmical weapons, a small country that suddenly turns out to be very important for world democracy, a new disease of maybe some New terrorist group.

Wed, 10/15/2014 - 09:46 | 5333562 LULZBank

I thought we had already covered all that.

Now its time...

Wed, 10/15/2014 - 09:33 | 5333433 valley chick

And where can I find the stock exchange clock as to the amount sold and at what time of day they can halt the thing they call a market. It has been some time since it has been posted to remind us.

Wed, 10/15/2014 - 09:37 | 5333439 valley chick

Dup

Wed, 10/15/2014 - 09:37 | 5333478 Boston