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Bunds & Treasuries Test Key Technical Levels

Tyler Durden's picture




 

That escalated quickly...

 

Shockingly fast moves in the increasingly illiquid bond markets...

 

with Bunds dramatically underperforming Treasuries...

 

Of course - the UST move could just be reflective of expectations for a heavy corporate calendar and the 'transitory' effects of rate-locks on an illiquid market... we shall see.

 

Charts: Bloomberg

 

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Tue, 05/05/2015 - 10:18 | 6061735 LawsofPhysics
LawsofPhysics's picture

about those unfunded liabilities and debt servicing....

tick tock motherfucker...

Tue, 05/05/2015 - 10:24 | 6061754 Xibalba
Xibalba's picture

Interesting to see Gold rise with yields ....

 

tick-tock indeed.

Tue, 05/05/2015 - 10:30 | 6061774 LawsofPhysics
LawsofPhysics's picture

dollar weakening. is it our turn to print, again?

Tue, 05/05/2015 - 12:28 | 6062322 KnuckleDragger-X
KnuckleDragger-X's picture

Bend over and spread'em wide because its BOHICA time....

Tue, 05/05/2015 - 10:25 | 6061756 El Oregonian
El Oregonian's picture

Escuse' moi, she no worky...

Tue, 05/05/2015 - 10:27 | 6061759 ShorTed
ShorTed's picture

"debt servicing"...good one.  Don't you have some expression about things not being sustainable?

Tue, 05/05/2015 - 10:31 | 6061776 LawsofPhysics
LawsofPhysics's picture

paper games, the world is not Japan however.  This time, it's global Weimar.

interesting times...

Tue, 05/05/2015 - 10:36 | 6061793 Achilles Heel
Achilles Heel's picture

Japans leading exports = Radiation & zombie company business models

Tue, 05/05/2015 - 10:23 | 6061742 Glass Seagull
Glass Seagull's picture

 

 

All the money managers are coat-tailing Gross' call, getting way bearish long end. 

 

Where have we seen/heard this before?

Tue, 05/05/2015 - 10:55 | 6061875 tarsubil
tarsubil's picture

Look at the trend since 1980 with treasuries. That trend is not ending until the end.

Tue, 05/05/2015 - 11:29 | 6062035 firstdivision
firstdivision's picture

It could easily end, just repeat the 70's. 

Tue, 05/05/2015 - 10:22 | 6061747 Seasmoke
Seasmoke's picture

Sure seems like those public takers pensions are in big trouble 

Tue, 05/05/2015 - 10:24 | 6061750 Dr. Engali
Dr. Engali's picture

Gosh, imagine that. People are demanding yield in return for borrowing their "money". Wake me when rates blow out a few percentage points vs a couple basis points. 

Tue, 05/05/2015 - 11:12 | 6061951 disabledvet
disabledvet's picture

Shale plays look a lot better all of a sudden.

Plus the yields are massive.

Natural gas prices remain at all time lows.

So are coal prices.

Sure looks to me like the dollar can have a massive move higher again even without the Fed doing much of anything.

Spring is already over. Farmers planting three weeks early. Suppose to hit almost 90 this week.

Tue, 05/05/2015 - 12:22 | 6062283 combatsnoopy
combatsnoopy's picture

you mean your meth habit?  yay. Thanks to the garbage tweakers, we can't afford to commute or get shelter. 

Tue, 05/05/2015 - 10:26 | 6061758 Kaiser Sousa
Kaiser Sousa's picture

watching the Dow....

what a fucking joke.....

Tue, 05/05/2015 - 10:28 | 6061765 Soul Glow
Soul Glow's picture

Algorythems killed the day trading star.

Tue, 05/05/2015 - 10:54 | 6061865 Consuelo
Consuelo's picture

The very first video on MTV...

Tue, 05/05/2015 - 10:40 | 6061804 Snarf
Snarf's picture

Well that's the top boys...  look at them prop the dow up while they unload the illiquid stuff (RUT looking awful).

 

Last 9 months of action have been nothing but short squeeze.   The pressure of that squeeze died last Thursday.   They squeezed once more above nas 5000, and now we collapse.

 

They'll dump the dow en masse before the end of the week, guaranteed.    That piece from Gross (which was excellent and completely true) should be enough psychologically to push it over the edge.

 

The great bear market begins.

Tue, 05/05/2015 - 10:45 | 6061812 Fiat agnostic
Fiat agnostic's picture

Multiply these moves by 100 to appreciate the real effect on our over levered, debt ridden, algorhythm driven, hedge fund centric, close to collapse, teetering edifice of a ponzi scheme - to appreciate what's really going on behind the scenes.

Tue, 05/05/2015 - 10:45 | 6061830 starman
starman's picture

Just saw a Honda comercial where they "claim" to pay your student debt off if you buy a new Honda! I shit you not !

So worry not about debt someone else will buy it or "pay" it off for you!  

Right.

Tue, 05/05/2015 - 13:12 | 6062492 Babaloo
Babaloo's picture

Uhh, no.  I know there are people on here who are too stupid to understand ZH postst and financial markets in general, but I didn' t realize there were people on here who are too stupid to understand commercials.

It's a proud day for you starman.

Tue, 05/05/2015 - 10:47 | 6061838 vote_libertaria...
vote_libertarian_party's picture

Maybe Greece is going to drop the bomb tomorrow and some of those euro bond holders aren't waiting for Round 2.

Tue, 05/05/2015 - 10:48 | 6061843 kaa1016
kaa1016's picture

I would buy 30 year US treasuries here for a trade. Shit economic numbers equals no rates hikes anytime soon. People will start to price in the odds of rate hikes this year at zero and a chance of more QE. 

Tue, 05/05/2015 - 11:11 | 6061947 Loucleve
Loucleve's picture

TLT just decisively broke the 200 day - they forgto to show that chart.

and the pattern looks to be accelerating.

short interest on TLT had been back to 20%.  my guess is, big money is shorting the shit out of them,

mortgage rates just hit a key level.  housing will be back in the shitter.

Tue, 05/05/2015 - 10:50 | 6061851 Soul Glow
Soul Glow's picture

So silver is the only asset doing well right meow.  Makes since.

Tue, 05/05/2015 - 10:59 | 6061888 Dr. Engali
Dr. Engali's picture

Yeah and it makes sense.... and cents too. ;->

Tue, 05/05/2015 - 11:04 | 6061914 Soul Glow
Soul Glow's picture

LOLz

Remember when cents meant something?

HA!

:)

Tue, 05/05/2015 - 11:12 | 6061955 Kirk2NCC1701
Kirk2NCC1701's picture

 

As I said before*...

In a currency & financial world, where CBs and the political central planners control currencies and news national stats, I would be very cautious about interpreting the associated tea leaves.  Forget stats and stocks -- it's all Sno-biz and Showbiz.

The one stat I'd keep an eye on, is the bond YIELD in Germany and US. When these go to Zero, then we have the equivalent of a star using Iron as its nuclear fuel -- a process that uses more energy than it produces (to keep the temperature and pressure higher than the force of gravity).

At that point, the true End or Reset will not only happen, it MUST happen and Derivatives will go Super-Nova.

* Mon, 04/20/2015 - 17:12 | 6012278   Kirk2NCC170  

Tue, 05/05/2015 - 12:24 | 6062293 combatsnoopy
combatsnoopy's picture

Sorry ECB,  your liquidity ended up at an Aldi in Germany and all you get are bananas.  haha. bananas.  the markets' collateral is rotting bananas.  AWESOME. I'm so glad the gouging and racism was worth it. 

"Cocaine accidently delivered to Aldi supermarkets - again"

http://www.bbc.co.uk/newsbeat/article/32589501/cocaine-accidently-delive...

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