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30Y German Bund Yield Plunges Under 1% - Record Low
"...but it can't go any lower, right?" On the heels of yesterday's German deflation and today's near-record EU wide deflation prints... and the ongoing tumble in inflation expectations post-Q€ - the rush for the safety of Bunds continues (and with it the arb-drag on US yields) as for the first time ever, 30Y German Bunds yield below 1%...
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i'll bet greece is really happy about that.
let the good times roll! /s
The funny thing about the cleanest dirty shirt is it still stinks to hell. And getting worse by the minute.
The unwinding of the bond bubble will be EPIC....
Come on guys.......everything is AWESOME!!!
It's the one hour version......your welcome.
https://www.youtube.com/watch?v=cCKONHUigVk
Wars may break out on five or six fronts...including mainland USSA & Saudi Arabia.
yea, our horse is only 2.2 lengths behind and we r closing fast...
30 yr will be the new funding vehicle
Watch when they dump the short end
Depression equals curve inversion
Sqwash!
Do they even have to dump, or will they just roll them into 30's upon maturity?
precisely why WWIII will happen first.
same as it ever was...
Yes but if you see what going on it really won't amount to much. I mean if we go to -0% and we rise to say +2% the damage will be moot.
Everyone is rushing to buy bonds. UK and US bonds are surging as well.
10-yr US@ 1.68, UK@1.36 - Spain and Italy selling off, though they're at farcical rates.
Talk about "return of capital."
Don't keep your money in a Bank thats for sure.
This says to me a large State is insolvent here...keep on currency trading tho! Everything is just fine!
That just makes US Treasuries a screaming buy buy buy.
<Step right up folks. Plenty for everybody. If we need more we can just print some extra.>
Strong dollar, higher yielding treasuries. A perfect carry trade until all .gov's borrowing cost reach zero.
That just makes US Treasuries a screaming buy buy buy.
That and a fist full of dollars.....how can you go wrong?
Sticking the landing is going to be the hard part.
Long Treasuries are a screaming TRADE (nopt buy and hold).
The spread between UST 10yr and 10yr Bund has NEVER been wider than today ~ 175 bps. Article link below is a few years old but very relevent (at least for the past 10 to 15 years) - the AVERAGE spread was 22 bps for 2001 through 2011 - whoa! The highest spread in that time period was 118 bps. Today we are at 175 bps. World traders and going to buy buy buy the Treasuries, although they have to hedge USD against their local currency & will incur some hedge loss to risk the trade.
http://www.naic.org/capital_markets_archive/110228.htm
Good luck trading -
NoVa
Oh, they'll be a screaming buy when your IRA, annuity or 401(k) investments are swapped for 'safe secure' Treasuries.
<You're gonna eat those Treasuries and you're gonna like them. What's a matter, don't you love your country?>
I said a trade. I wouldnt buy & hold Treasuries. Shorting Treasuries for a long-term hold is something to consider - just don't know how probable deflation will be. Market forces are screaming deflation, but the Fed is fighting back to inflate.
Good luck -
, but the Fed is fighting back to inflate.
By not printing more money and raising rates in June/July?? You're either smoking some good shit, or you're delusional...maybe both..
Laugh all you want, but that's exactly what some of us have been saying here for a while.....the relative value of US Treasuries suggested that one should buy with both hands.
How did that turn out for me? Well, I've made more money in the last 45 days---being long US Treasuries---than I typically do in an entire year.
Dude, I am delighted you can make some extra fiat on the con. My question is.....how are you gonna keep your fiat? When exactly do you get out and swap those fiat dollars for something else?
<You can keep it if you like it.>
Cool. Since the primary trend in Treasury prices is up, I'll keep buying on dips and selling on rips until the trend ends.....who knows, with the 10yr at 1.5%, 1.25%, 1.00% or even lower.
To answer your question, I buy other assets only if and when they crash in price. And up until a few months ago, there was nothing that was on "clearance sale"....except for Ag (which could fall lower if equities finally "correct"). But lately, oil, copper, and some currencies are crashing.....so that's what I'm buying.
Cool, so you're buying paper oil, paper copper, and other fiat currencies. I'm sure you are now safe by doing so, after all diversification always disperses risk.
Japan is almost jealous.
The German 10yr is yielding the same as a Japanese 10yr as we type. Hard to say who's jealous at this point.. Personally, I think they're both panicking in proper fashion.
Negative infinity would suggest that there is some "room to move".
LOL!
Seems like a great deal to me! Almost 1% for 30 years! Wow, sign me up!
low oil prices are good for economy
look out below
Guys! I take $10,000 and in 30 years I'll have $13,438. You know, provided they pay me back.
BALLER!
thats not the trade.
you buy a bond at 130, and sell it later this year at 150 to the ECB. easy trade. the ECB is buying hundreds of billions of it
until ECB can't...
yep but thats for another trade, in a few years time. for the time being, make money with the ECB. let them buy 30Y bunds at 0%... theres still money to be made.
i think they don't have few years...
But... why would buy a bond only to sell it later?
GAWD, financial stuff is SO hard.
Just like Beanie Babies and tulips.
haven't you all forgot that those bonds are excellent AAA collateral? that's two reasons in one
That is the only reason to buy. When the only reason to buy is to sell it to the next fool, that is a ponzi. It is just a matter of timing and not getting your faced burned off before you make your escape.
30 years ago a loaded 4x4 Toyota pickup cost just under $10,000.
Add inflation to the equation.
This is a truly scary indicator of future expectations
It's not an indicator, it's bullshit.
Sounds like they're gonna need TP for their bund hole.
Are you threatening me?
Look, it's NotApplicable.
Can't wait to refinance at 2% rates later this year...
I just hope I live long enough to see the banks burned down. I'm imagining it right now, like the ending of V for Vendetta. All the common folk, huddled together under the night sky with the flickering light of the flames on our stoic faces.
And that flickering light is the flames from the burning bodies of the central bankers and their politician buddies.
Good for them. Janet's going to raise rates.... any time now........ still waiting.
Rates are dropping because there is no real demand for money. Businesses do not want it to expand. Consumers do not want it to spend. And now savers cannot invest it to earn a moderate amount of interest.
Do the Central Banks not realize that supply and demand also applies to the commodity that they produce with reckless abandon?
And what is their solution?
Like anyone that failed business school, they will produce even more
Unfortunately people are still accepting that paper.
I think you are missing another crictical element here. For example, why should banker and financiers be the only people with access to FREE MONEY (QE and ongoing ZIRP)?
When I think about what these fuckers actually create with their labor, I'd much rather give a productive engineering firm access to money for free and hang the fucking bankers and financiers.
You mean consumers can't get it to spend (at least 90-some percent of them). Which is why businesses have no need to expand. Production capacity has waaaaaaaay overshot sustainable demand, thanks to that giant sucking sound of pulling forward future demand on credit.
We're about to find out what happens when there's no future left to consume.
https://www.youtube.com/watch?v=ASvYzbIysAY
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Few years ago, you could buy 5 years Chinese bond in Yuan for 2.5% return.
ze 5 Yearhs arh already negatiffs.
I give 30's a couple of years before going furchtbar.
But if you want the real deal , go full switzerland though.
.
Do rates this low everywhere Spell DEPRESSION
Fear.
The cold, ugly realization that soon all could be lost is driving this bus.
F*ck.
Everything.
And.
Run.
Western c/b zero interest rate and attempt to devalue western currencies is DEFAULT.
Surrender now, we have you surrounded.
Gold Bitchez....I pick up pennies
"If you want my bunds you are going to have to pay for it !`