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US Treasuries Are Soaring, Stocks Fading As European Bond Risk Surges

Tyler Durden's picture




 

30Y US Treasury yields have collapsed over 14bps since Draghi unleashed QE... and US equities now well in the red post-QE.  Not exactly the kind of risk-on "buy buy buy" everyone was hoping for as European Peripheral bond risk spreads are rising...

Treasury yields are plunging...

 

as are stocks...

 

As European peripheral bond risk spreads rise...

 

 

 

Charts: Bloomberg

 

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Thu, 01/22/2015 - 10:39 | 5692103 Headbanger
Headbanger's picture

Now watch China dump the Dollah like SNB dumped the Euro!

Thu, 01/22/2015 - 10:42 | 5692115 firstdivision
firstdivision's picture

Not gonna happen as China needs the USD to keep the China illusion alive for a bit longer.  Russia cannot help China in that department.

Thu, 01/22/2015 - 10:50 | 5692140 kliguy38
Thu, 01/22/2015 - 10:51 | 5692155 Headbanger
Headbanger's picture

No Won-Ton soup for you!

Thu, 01/22/2015 - 11:10 | 5692224 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Better add some more shills to the cnbc guest lineup who claim the fed will raise rates soon... you know, to make it super-duper ultra believable.

Thu, 01/22/2015 - 11:58 | 5692426 Obchelli
Obchelli's picture

Aaaaaand ZH Jinxed it again

Thu, 01/22/2015 - 14:44 | 5693097 Funny Money
Funny Money's picture

ZH is my favority Chicken Little: "THE MARKET IS FALLING!  THE MARKET IS FALLING!"

Thu, 01/22/2015 - 15:48 | 5693371 Down to Earth T...
Down to Earth Thinking's picture

Market ? are you referring to the gov controlled illusion called a market ?

Thu, 01/22/2015 - 11:19 | 5692282 MalteseFalcon
MalteseFalcon's picture

China is not messing with the set up anytime soon.

In fact China going to print when their turn comes around.

Thu, 01/22/2015 - 10:43 | 5692120 surf0766
surf0766's picture

Russia was 'selling" gold... except it was selling US Treasuries and buying gold.

Thu, 01/22/2015 - 10:59 | 5692191 astoriajoe
astoriajoe's picture

easy mistake. Treasuries are like gold, right?

Thu, 01/22/2015 - 11:57 | 5692420 motorollin
motorollin's picture

Only in the eyes of the US government.

Thu, 01/22/2015 - 12:20 | 5692502 disabledvet
disabledvet's picture

Well...maybe in the eyes of "those middle class folks."

That's what this whole program was about folks! Help out the non government working man folk!

Interest rates are plunging! Recovery is at hand!

Thu, 01/22/2015 - 15:49 | 5693374 Down to Earth T...
Down to Earth Thinking's picture

recovery has been at hand for how many years now ?

Thu, 01/22/2015 - 11:14 | 5692250 me again
me again's picture

I sold my Ruble Future for Mar.'15@-475 P&L; and bought two Junes @.014420.  There's no reason for the Ruble to deteriorate any further; and the chart looks okay; it's highly speculative.

Thu, 01/22/2015 - 11:27 | 5692318 Neverstopprintingme
Neverstopprintingme's picture

all of this chatter is nonsense. the spy bounced of teh days lows and within 20 mins we are bakc on the highs.  just prepare your self of the s&p 4000..in 2015.  mark it!

Thu, 01/22/2015 - 10:38 | 5692109 medium giraffe
medium giraffe's picture

unexpected dose of reality...

Thu, 01/22/2015 - 10:40 | 5692113 the not so migh...
the not so mighty maximiza's picture

he should hhave used a laser cannon,  more accurate

Thu, 01/22/2015 - 10:41 | 5692118 Bernanke'sDaddy
Bernanke'sDaddy's picture

No my friend,

He should have used a Topol-M.

Thu, 01/22/2015 - 13:44 | 5692857 Rootin' for Putin
Rootin' for Putin's picture

Or an inkjet canon

Thu, 01/22/2015 - 10:43 | 5692122 Dr. Engali
Dr. Engali's picture

Stawks rallying, bawnds rallying, gold up, gas prices down, jawbs being created hand over fist..... life has never been better in Obamaville.

Thu, 01/22/2015 - 10:47 | 5692139 FreeShitter
FreeShitter's picture

Ikr.....life has never been better.

Thu, 01/22/2015 - 11:14 | 5692249 BandGap
BandGap's picture

This is very refreshing kool-aid.

Thu, 01/22/2015 - 11:22 | 5692298 Thisisbullishright
Thisisbullishright's picture

Is it the Jim Jones variety of kool-aid??

Thu, 01/22/2015 - 15:52 | 5693382 Down to Earth T...
Down to Earth Thinking's picture

Yep, all is well ! pass the melon pleeeeeeeeeeeeeeeeeeeeeeeeeease. 

Thu, 01/22/2015 - 10:49 | 5692152 Jethro
Jethro's picture

People fleeing to the USD as safety is like the school children in Beslan flocking to the female terrorists (which detonated themselves when enough children arrived).

Thu, 01/22/2015 - 11:00 | 5692160 john_connor
john_connor's picture

ha ha ha ha ha ha ha.

 

What "surprises" are left?  Increase QE by 10-20 billion per month?  lol.  It doesn't work.

 

The tide is going out and it is an ugly site.

Thu, 01/22/2015 - 11:34 | 5692342 Bangalore Torpedo
Bangalore Torpedo's picture

The tide ALWAYS goes out, right before the Tsunami hits...or until high tide comes back.  Whichever comes first (or together, for that matter).

Thu, 01/22/2015 - 16:04 | 5693419 Down to Earth T...
Down to Earth Thinking's picture

Anybody else notice a new mantra amongst the control freaks ?  Like, what do we do now , the QE thing didn't work so well and we have created massive debt that there is no way to ever repay. Is there a better illusion we can create ? or just hit the RESET button and start over once we have as many chips as possible ?

 

Not saying they are all at this point , but there are cracks and fissures in the elite status quo mechanism that did not exist just a short while ago and many commnets that did not exist from heavy hitters that create more doubt.

Thu, 01/22/2015 - 10:55 | 5692170 skbull44
skbull44's picture

Unequivocally good for the economy then.

http://olduvai.ca

Thu, 01/22/2015 - 11:01 | 5692192 Tsar Pointless
Tsar Pointless's picture

In those times when I briefly forget the definition of insanity, I'm glad there are Central Bankers around to jog my memory.

Thu, 01/22/2015 - 11:03 | 5692200 f16hoser
f16hoser's picture

Drink my Kool Aid Bitch! Actually, Fuck You Draghi.

Buy Gold/Silver-Bullion you dumb asses before it's all gone... That's what the rich are doing... Nuff said.

Thu, 01/22/2015 - 11:18 | 5692265 me again
me again's picture

Can't argue with that.

Thu, 01/22/2015 - 11:05 | 5692211 surf0766
surf0766's picture

they will push the fucker green. Can't have the CB's look like idiots

Thu, 01/22/2015 - 11:09 | 5692227 buzzsaw99
buzzsaw99's picture

i really thought the dax would go at least +3% on the announcement. i guess a trillion euro isn't enough.

Thu, 01/22/2015 - 11:24 | 5692308 PartysOver
PartysOver's picture

Give it a little time.  To maximize their profits they must first run the Stops.

Thu, 01/22/2015 - 12:29 | 5692545 Colonel Klink
Colonel Klink's picture

Too late!

Thu, 01/22/2015 - 11:06 | 5692212 Bangalore Torpedo
Bangalore Torpedo's picture

In a normal market....

I would pay attention to the fact that the last "rally" just failed to break above the 50 day MA.

...but then that's a concern with a normal market.

Thu, 01/22/2015 - 11:19 | 5692276 me again
me again's picture

Indeed; and of course, it is a  normal market. maintaining my short position on the S&P500 @2048.5.

Thu, 01/22/2015 - 11:11 | 5692238 Fun Facts
Fun Facts's picture

global_liquidity_trap++;

Thu, 01/22/2015 - 11:16 | 5692254 HardlyZero
HardlyZero's picture

Mario forgot the hat and hammer stage props.

Market needs the animation !

Thu, 01/22/2015 - 11:22 | 5692290 Thisisbullishright
Thisisbullishright's picture

The stock market is up so everything is fine.....just go about your business!  Nothing to see here!

Thu, 01/22/2015 - 11:21 | 5692293 GMadScientist
GMadScientist's picture

Wait until they find out what a brainscrambler that bunk XTC turns out to be.

Anyone recall the current status of liquidity swaps across the pond? :)

Thu, 01/22/2015 - 11:44 | 5692375 GFORCE
GFORCE's picture

The smart money knows that the ECB has used its last policy tool. Take your profits and invest in the U.S.

Thu, 01/22/2015 - 11:48 | 5692383 lakecity55
lakecity55's picture

Why did things go bad in 2008?

Leisure Suit Barry: Thanks for welcoming me to your meeting, banksters. Why so sad?

The world economy we ripped off is going to blow up.

Here, do some of this windowpane and smoke a couple of these jays.

Wow! Things are not so bad! Let's print money and stiff the taxpayers!!

Hear! Hear!

Thu, 01/22/2015 - 11:50 | 5692392 Ausjac
Ausjac's picture

Can anyone point me to a site that can explain the bond market.

I would have thought low yields were a reflection of confidence in a strong dollar, low repayments for the USA and therefore a good thing.  Greek bond yields up = negative.  US bond yields down = negative.

And find it hard to get around the idea that for existing bond owners a falling yield is a bad thing when I thought the rate was locked in when purchased.

Anyway a link to somewhere with a simple explanation would be great.

Thu, 01/22/2015 - 12:01 | 5692441 madcows
madcows's picture

time to update the story.  stocks rip higher on more free money.  bonds tumbling.

Thu, 01/22/2015 - 12:06 | 5692450 madcows
madcows's picture

BTFD.  looks like it's Eurotrash's turn to juice the market.  Last month it was Japanimation's turn.  I'm betting Bulltard will make a "QE4" statement come next month, as it will be the FED's turn to sprinkle fairy dust on the markets.

Never bet against the FED or any other central bank printing house.

inflate or die.

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