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Guess Who Wasn't Shorting Treasurys
After America's commercial/investment banks crushed all momentum chasers hedge funds in 2014, with one after another after a third recommendation to go long stocks and short bonds starting in late of 2013 and repeating the broken record every single month because, you know, "the recovery", ignoring the massive outperformance of bonds over stocks in 2014 as Treasury shorts have been forced to cover at ever higher prices now that the global economic emperor was finally was revealed to be completely and utterly naked (thanks Goldman)...
... one would think that banks would have eaten at least a little of their own cooking, and partaken in what has become a ridiculously crowded 10 Year TSY short, which according to the latest CFTC COT report saw another 131K net shorts added, the most since May 2014.
Well, one would be wrong. As in very wrong. Because as the following H.8-sourced chart shows, not only have commercial banks not added to Treasury shorts, but their long exposure of Treasurys (page 2, line 5) is now the highest in... ever!
So as banks were urging their clients to short, short, short bonds, they bought, bought, bought every single CUSIP they could find.
Which should not come as a surprise to anyone.
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assholes
Swirlolgram.
Banks = White Collar Crime.
Real production, as in producing something your fellow man can actually use, is gone. Financialization and ponzinomics is here to stay. Thank you money gods.
Financialization is not here to say. It is unsustainable. Unfortunately, you are correct that real production is gone.
Banks have been herded into Treasuries by Dodd-Fwank and other regulations (Basel III?). It's not just as a trading position.
Oh, and by the way, you're going to be herded into government bonds at some point in the future as well.
Too late. We've already been herded into Government bondage.
Then free yourself.
Cash, Bonds, Gold...
"Then free yourself. Cash, Bonds, Gold..."
Cash, Bonds, Gold.....Guns & Ammo
This bondage doesn't feel good
True. Was speaking to a guy in the private sector about this earlier today in fact.
You mean like upgrading our entire infrastructure, falling apart bridges, the underground water and sewer lines? The blight on cities all over the place?
You mean like having J Yell 'invent' as many trillions of FRNs that Ben gave and she continues to give to Lord Blankfein and the rest of her Tribe, to 'invent' the same trillions to be spent creating millions of jobs for unskilled, skilled, and just plain ol' labor??
I stil have not bothered looking up how to read one of those. No idea what it is saying.
muppet stew
Again you are surprised what the "research side" is saying vs the "hedging/trading side" is doing?
LOL if you really think a Bank is going to tell retail what its Book is really doing.
"So as banks were urging their clients to short, short, short bonds, they bought, bought, bought every single CUSIP they could find."
...which I find as a positive step. The clients get at least their money back before the treasuries go definitely bust.
This article is terrorism and the world needs to be saved from this kind of disinformation.
Therefore the department of justice must finally develop solutions to defend free speech in our interconnected world, to protect the values the USA has been founded on!
[/orwellian]
This long and short game means nothing, just like the paper gold/silver long and shorts and rigged price..
The longs could sell and the shorts cover if the Fed asks them.
If the fed asks JPM to pull their longs at on this day and time, or add shorts...damage done.
I do not understand by now how anyone could care a hoot about comex shorts and longs in anything.
Especially in the PM's, which by physical demand is a stronger market than all stock markets,
the realestate market, and all bond markets worldwide, and guess what, the most hammered in the paper markets.
Place your bets folks.
Agreed, and yet I still wonder why this site and many others continue to pass on investment advice from these slugs to us ???
If you don't know why, your at the wrong place....
my neighbor's half-sister makes $63 /hour on the internet . She has been out of work for 10 months but last month her pay was $16551 just working on the internet for a few hours. More Info... www.job-reports.com
You fucked up, you trusted us. [/otter]
it amazes me that anyone would actually trade on GS/JPM, etc advice. do the opposite will net you winners 80% of the time and losers 20% of the time. yes, you still lose 20% of the time because the banks still have to pacify the muppets with an occassional "victory".
Mmmmm, fresh roast muppet........
Never trust anyone telling you how to spend your money. It always benefits them more than you.
This is 'Muppet Skullfuckery' 101. Wake me up when we get to the derivatives jujitsu.
Who? everyone with two fucking brain cells to rub together...
please, in the new centrally planned world, interest rates cannot rise, period.
Watch some high-flying .gov economists conjure up justification for two seperate and mandatory interest rate schemes.
One for them and their crony pals and one for everybody else.
Yet, barring a black swan, they will rise eventually. That'll be good times.
no, interest rates are not simply irrelevant...
watch the trade routes...
the world is at war, most sheeple are simply just too stupid to notice/care...
Barring a black swan, I'm betting that the Fed will eventually lose control. I'm betting that we'll wind up in a situation where interest rates cannot go up, yet they must, at the same time, go up. We've crossed the Rubicon. As things become more unstable, you're going to see the Fed do things that you would not have expected them to do. None of it will save the status quo, but they're going to go down swinging anyway.
Perhaps, like I said. Interest rates will become irrelevant. just like what happened with the central planning of the Soviet Union, there will be "official" prices for everything, most of which will not be avialable.
glad I went long black markets and sharecropping, because barring a real war the kills off millions of unfunded liabilities people are going to still be looking to feed themselves. they will do business "under the table" simply because they have to.
I think that the dollar itself will be rapidly becoming irrelevant when that comes to pass, ala Weimar. That is the preferable alternative to war, as we all know that a real WWIII will not stay conventional.
The Fed will be facing several catch-22s because the greedy fucks could not wrap their heads around the concept of a finite planet.
The Fed has been pushing chocolate dunked cotton balls for quite a while already
+1 one for the Milo MinderBinder reference
Geez, who knew they would turn out to be LYING SACKS OF SHIT ....... AGAIN?
I can hear them now, "Oh shit, you did exactly what we told you to do. Looks like your screwed"
The George Constanza defense " its not a lie if you believe it".
Who still listens to what their friendly bankers tells them to do in the markets? I'm amazed that anyone would pay for the banks "research".
The fobidden word is SELL.
And what about the net commercial (banks) position in CFTC futures, which are still massively short - much like the speculative position?
No inference can be made for banks long or short positions based on the FED report and commitment of traders report alone. And they don't play the same hand - BoFA might be short but GS might be long.
Makes no difference. Even if the muppets had stayed short stocks and long bonds they would have still fleeced them by moving the market against their positions.
This is just "only if I hadnt... " bullshit to keep everyone involved in the game.
Market is where the big players with free money want it to be.
pain isn't over yet, not by any stretch
German 10 yr Bunds still at 85 bps....we will go sub 1%
that will be REAL pain for most
also the #1 holding of el presidente obama
It should surprise nobody that the muppets will continue to trus these assholes with their savings for some odd reason as well. I guesss the muppets all enjoy a good ass raping.
Dump dollars, hold treasuries
The dollar holder holds tha bag, that is why UST liquidity is drying up. Institutions are not selling any.
Which means a couple of major players will go down soon and extinguish those dollars with them
Who will be the sacrificial lambs?
But then, you said, less dollars will buy more stuff?
Yes, for those still alive holding them
It will be a margin call ensued by panic selling
Good for the economy, bad for derivatives
Please, none of those derivatives are going to actually pay shit, or is that what you are saying.
Long black markets and sharecropping we are simply approaching the same "Soviet Union" endpoint, just coming at it from a different direction. If you think our government is corrupt now, just wait.
What the hell are you talking about? If a major player is taken out then dollars is exactly where you want to be (after PMs of course). Taking out players is deflationary and will give those dollars more buying power.
King Dollar for now
put me down for DXY will hit 90 (or above) before it breaks below 80 (which might be quite a while)
agree
Yep, then after that, physical dollars will have some added value, at least for a little while as we head into hyperinflation in earnest...
yep, my mattress padding will have some use for awhile.......
exactly
Back in april ... AKA "six months ago"
A 100% ConsensusThis doesn't happen very often. Marketwatch reports that Jim Bianco points out in a recent market comment that the 67 economists taking part in a regular Bloomberg survey have a unanimous forecast regarding treasury bond yields: they will be higher 6 months from now.
http://www.zerohedge.com/news/2014-04-23/groupthink-or-black-swan-rising...
or maybe they see themselves as only need to bridge a gap until the next QE is announced.
Don't buy = bond crash (now that the Fed has stopped buying
or
buy until next QE
It's an easy choice for them. Do whatever it takes to prevent a crash TODAY. Tomorrow is a long time in the future.
Peter Schiff just on CNBC with Rick Santelli - saying that he thinks the FED has QE4 primed and ready to launch, and that they will not be stopping their intervention but continuing to prop those at the top, income inequality, and the bubble economy.
Well, we know for certain that they can't 'prop it up' forever, they're on borrowed time and that always has an expiration date.
Seems very likely doesn't it. The only question is what assets will they be buying because they pretty much have surrounded everthing already. The only thing that can keep central banks in retreat is Ebola because Ebola destroys global trade and product demand. If Ebola is under control they can resume their destructive currency paths.
How or why the Fed sees little concern in whether the reserve currency status is lost is beyond me. I know I wouldn't want my name attached to that end, but that's where we are heading.
How could everyone know for certain that the central banksters were lying and just trying to kornhole you?
Their lips were moving.
The central banks are the markets.
they have a direct line to the FOMC.
Indeed, the owners of the FRB of NY likely are mostly the same owners of Goldman.
Obama doesn't care to investigate, you see, because though candidate Obama promised no lobbyists in his adminitration, he hired tons of lobbyists, as well as former execs, for Goldman, and as we all know, didn't go after any banksters, and basically only appointed CFR and Brookings members.
But he's black, and liberal - so its not a high crime or misdemeanor when he does it, just like its not a war crime when USrael does it....
Thank goodness for booze.
Did the economatters dude die last week?
Social Security? No, wait, the FED...
http://finance.yahoo.com/q?s=DTYL&ql=1
YTD Return =9%.
I wasn't shooting on Tuesday.. I had to work.. *sigh*
EDIT: I really should put my glasses on, before surfing....