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10Y Treasury Yield Tops 2.00% Following Consecutive Weak Auctions
Following a 0.9bp tail in yesterday's 5Y auction and 1.1bp tail in today's 7Y, 10Y yields have snapped 12bps higher and broken back above 2.00% for the first time since The FOMC meeting last week...
Charts: Bloomberg
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Oh, do tell...
The government liabilities are what they are...
Either taxes are going up, way up, or rates are going down, way down...
tick tock motherfuckers...
Dow +ve by session end
Those aren't liabilities, they're opportunities, now bend over like a good proles.....
Why so negative? We will probably get both.
I was waiting for someone to say that, this would certainly be the European/Japanese model...
...but, imagine what that will do to PMs!!!
IMO, there can officially be only one Japan. Big premium on PMs in the E.Z., sure, bring that stateside, fine by me.
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let's discuss race
NASCAR or Formula One?
"let's discuss race "
Race or culture?
Can someone explain why Treasuries are selling off? What changed in the past 2 days?
yemen i guess
Mos def' -- Houthi rebels are big sellers I hear.
No demand?
No confidence?
No faith and bad credit?
nothing changed, just primary dealers doing what they do best - manipulate.
this argument that the auctions were weak to justify this kind of price auction are ridiculous. this is coordinated.
USD buying frenzy in motion. I expect treasuries to have a big evening and day tomorrow.
i thought the volitility in the 10y would shock the derivitives market last time. maybe this time is different?
"market"... LOL!
Pentagon's drill in Texas and Utah exposed.
Globalists caught playing with their dicks?
http://ca.reuters.com/article/businessNews/idCAKBN0MM2JG20150326?sp=true
NEW YORK (Reuters) - The New York Federal Reserve officials tasked with prying interest rates off the floor have been meeting with bankers and traders to plot how best to do it, amid deep uncertainty over how much control they will really have over short-term lending markets.
With the U.S. central bank expected to raise rates later this year, Simon Potter and his team of market technicians have the tricky job of implementing higher rates using some new and lightly tested tools as well as some that may not work as well as in the past. They'll be operating under intense global scrutiny that's centered on the prospects for the world’s biggest economy.
Even while testing new methods meant to sweep up trillions of dollars of reserves from financial markets, Potter's team is preparing for volatility and to make on-the-fly adjustments when the time comes, according to interviews with Fed officials and market participants.
The trouble is that the federal funds market, the intra-bank trading pool traditionally used by the Fed to meet its policy goals, has shrunk to about a quarter of its pre-crisis size after more than six years of unprecedented monetary stimulus.
"There is a lot more uncertainty in the mechanical features of the outlook than people admit to," said Joseph Abate, a money-market strategist at Barclays Capital.
The Fed wants to avoid a scenario in which yields don't rise enough after it lifts the fed funds rate because banks, flush with $2.5 trillion of reserves parked at the central bank, don't need short-term funding.
The central bank also risks being drawn so deeply into money markets that it destabilizes things.
That's why the New York Fed, already under political pressure due to regulatory missteps, is taking every precaution it can to protect its credibility and that of the central bank. It wants to make sure that when the central bank decrees higher rates, yields will actually rise.
To combat anxieties on Wall Street and in Washington, Potter and his deputies have been hosting regular lunches with market participants to ask and field questions about what sort of market tinkering will might be needed or avoided to get it right, and how banks and funds will react.
He's has also met with officials at the European Central Bank and other global counterparts to outline the U.S. plan to tighten when most of them are easing.
in summary...in collusion/cartel fashion, the NY FED gives treasuries to primary dealers (and pays them in the process, gasp!) who in turn use this rented collateral to short treasuries.
"The Fed wants to avoid a scenario in which yields don't rise enough after it lifts the fed funds rate because banks, flush with $2.5 trillion of reserves parked at the central bank, don't need short-term funding. "
Total Bullshit.
Enough coddling of these greedy motherfuckers!
CHARGE 6% on Reserves parked at the FED instead of PAYING it and that money will fly out of Eccles and straight into the economy.
Negative real interest rates have been awesome for the Banks and unbelievably destructive for everyone else; it's time the Banks got back to being fucking Banks again instead of de-facto privatized taxation cartels dammit.
Boom! Yes, moral hazard is a real bitch like that, how much longer are we going to punish good behavior and reward BAD behavior?!?!?!
Stupid fucks.
No shit.
$2.5 TRILLION at a prudent 10 to 1 leverage means that $25 TRILLION in credit is being with-held from the real economy.
These fuckers are getting 6% for NOT doing what they were chartered to do.
Who wouldn't love to get a fully guaranteed 100% safe compounding at 6% on ANYTHING right now??!
This is an eggregious ongoing bailout that Obama and CONgress never get called on.
Raise Rates??!
FUCK YOU! -Provide the populace with guaranteed 6% and the economy will be in a very different place.
How about The FED pay 6% compunded interest to Treasury on the SS trust Fund? SS NOT as important than salvaging Citigroup?!
LOAN out $25T to small businesses and re-fi middle class America and you'll free up disposable income and get some fucking inflation!
What a bunch of fucking criminals in need of liquidation.
"What a bunch of fucking criminals in need of liquidation.' -- Yes, but such "let the majority eat cake" monetary experiments have been done before and only the fucking guillotine, or an equivalent can perform the necessary "liquidation".
No risk, no reward right?
"Those who make peaceful revolution impossible will make violent revolution inevitable." - JFK
spot on, but have to say loans for ultimaly a tapped out end consumeris flawed throughout the credit chain. private businesses would barrow, but damn conservativly, because, well, they have to answer to profits...
Consumers have been getting fucked for SEVEN goddamned years.
Only about 10 million well connected and/or exceptionally well compensated individuals were provided with re-fis.
6% compounded for 7 years on $2.5T that was GIFTED to the Banks -on top of their MTFantasy Accounting, TARP, etc . could have instead been used to pay down principal or write down interest on mortgages. There was a way out of the debt overhand without oppression of the middle class and small biz.
6% of $2.5T = $150BILLION per year.
Seven Years of $150 Billion RISK FREE per year = $1.05 TRILLION
IF $1.05 TRILLION+ had been routed THROUGH the over-indebted US Consumers on it's way to the Banks over the last 7 years the balance sheet of the US Consumer would look very different and the Banks would still have been bailed out...
Just passing the interest provided by The FED ( actually skimmed out of the reast of the economy! ) through the over-indebted and bringing their debt loads down and disposable income up would have gone a long ways towards repairing the damage.