Did The World's Central Banks Hit The Panic Button This Morning?

Tyler Durden's picture

If there is one thing more worrisome for the world's central planners than a stock sell-off, it is a bond rout 'proving' that they have lost control. The overnight carnage across global bond markets appears to have triggered someone (or someones) to step in - in dramatic size - to rescue bonds and save the world once again.

 

Rescue Me!! (Futures prices)

 

And what that looked like for German Bund yields...

 

What is becoming increasingly clear to the central bankers, as we noted earlier, is that since the bond market is now massively illiquid and everyone is on the same side there is no way to orchestrated a controlled decline.

Be careful what you wish for, stock 'investors'.

Charts: @NanexLLC

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Shizzmoney's picture

Skynet bought the dip

VinceFostersGhost's picture

 

 

It's a hell of a feeling when you save the world.

 

Screw it, let's just fix that Greece thing once and for all.

Fun Facts's picture

They're destroying our world to save their tin god charade.

SMG's picture

Wonder if they're testing for when the whole thing blows up.

Headbanger's picture

Notice the five waves up on the chart?

They shot their wad on that stupid stunt.

Massive, epic, BIBLICAL implosion dead ahead!

But it's time for golf again...

Soul Glow's picture

THere is only one button to press at the Fed and it is the "PANIC" button.

:)

PartysOver's picture

I suppose an Algo induced Short Squeeze is not a possible explanation after a sizable move in the bonds.   Catch'em leaning then stiffy in the arse.  The Fluffers have already prepped the asset.

Dr. Engali's picture

Jade Helm shelter in place. Let her rip.

Possible Impact's picture

"They're destroying our world to save their tin god charade"

 

A good Russian word for this:

zhest

http://www.italki.com/question/89171

(an interesting slang Russian word)

August's picture

>>>It's a hell of a feeling when you save the world.

Too true!  He who save just one life, saves a world entire.

"Whosoever preserves a single soul of Israel, Scripture ascribes to him as if he had preserved a complete world" (Tractate Sanhedrin 37a).

pound the vix's picture

Why do I never get the buy buy buy email.  Is it stuck in my spam folder

jump_mutha_fukah's picture

Kevin got some play, no worries, he's up and back at the helm, couple 5 hour energy drinks and a weak dong, ready to rock

Dr. Engali's picture

Be interesting to see if TPTB can hold the system together long enough for the MIC to get everything in place. It certainly seems like it wants to come apart at the seams.

THX 1178's picture

Its going to whether TPTB are ready or not.

youngman's picture

You can bet its rigged....it has to be....all is well ..move on...

Sir SpeaksALot's picture

the real question is how many more times they will do it, many BTFD opportunities coming :)

dimwitted economist's picture

so.. it's all good again? i should buy stock right? right?

F0ster's picture

This avalanche is ready to go!

Blopper's picture

Who cares?

If the stock market wants to go up forever, then so be it.

Rothschild is happy with it.

The Blood Moon hasn't arrive yet.

 

CPL's picture

Just get some popcorn, watch and wait, should be spectacular.  The handy work of the Coyote typically ends in disaster, like every story about the Coyote he ends up screwing himself somehow because he doesn't understand the word 'moderation' or 'plan'.  Always to his own detriment....I wonder how he dies this time?

aliki's picture

someone IM'd me this morning "seeing large buyer of treasuries across the curve, fast $$$ pouring in"

to which i replied "is his name janet??? ... or perhaps mario???"

zero question C-banks drop these rates back into the ground. they planted this story this morning just to guage the reaction & they crapped themsleves:

Wary of bond 'cliff,' Fed plans cautious cuts to portfolio - Reuters
http://www.reuters.com/article/2015/05/07/us-usa-fed-portfolio-idUSKBN0NS0BB20150507

teutonicate's picture
teutonicate (not verified) May 7, 2015 10:33 AM

An obvious problem, as ZH has identified, is that there are no private buyers of sovereign debt left.

They know better than to buy this junk - at least at these prices.

So when the slightest amount of selling pressure arises, the ONLY solution is for the CB's to jump back in.

If they let this thing domino, they are "up creek without a boat, much less a paddle".

SDShack's picture

That's been the plan along. The Fed outright controls about 1/3 of the total bond market. When you throw in their proxy banks (Belgium), they have to be close to 51% now. It's game over then. No bond market, because bond vigilantes are neutralized at that point. The Fed learned from the EU disaster. It's clear the plan is monetize all debt, buy soverign bonds, control 51% of the bond market to defacto control the market... then with the printing press you can have a perpetual Ponzi. What's to stop them? They control the politicians, and by extension, the security state. Welcome to the New Feudal World Order.

kareninca's picture

that was fonzanoon's prediction, a couple of years ago

pound the vix's picture

So if we give $400 Billion to Greece we can make $4 Trillion in stocks and bonds?  ok, but let's let a 10% drop happen first so we can claim we saved the world again.

The Axe's picture

I have read ZH for years, with large quantities of Scotch..usually---always so negative. But I believe that was a spot ON acticle. That was the iceberg..next panic  

Rusty Shorts's picture

If the Bond Market, indeed, Crashes on May 11th 2015 - I will put out a very detailed Video on Tuesday showing you how the whole thing was planned Months in advance. It will be an absolute Mind Blower:)

 

https://www.youtube.com/watch?v=Y3jxnur0468

Chippewa Partners's picture

Can Warren save Greece?   Does it really matter?   Pour another scotch.  Fuck it.

stant's picture

What do bond vigilantes rising from the dead look like?

Silverhog's picture

Just watching these record swings tell you things are breaking on many levels. 

forwardho's picture

Indeed it does, and the knowledge that there will come an equal and opposite reaction tells of the magnitude of the reversal.

GRDguy's picture

Old book titled "Actions and Reactions" by Roger Babson (1936). 

Point: There's nothing new under the sun.

youngman's picture

What kind of Scotch goes well with a bond crash????

Motasaurus's picture

Is this not exactly how the Rothschild family came to own both Britian and France? 

Did they not cause a panic in the British bond holders by making the (false) claim that Napoleon had been victorious at Waterloo, selling all their (now highly demanded) French bonds and buying up, at a ridiculously low price, all the British bonds in the world, and then when the real result of the battle reached the London and Paris markets, the now stupidly wealthy family could use but a fraction of the profits they made selling their French bonds to buy them all back up again?

Why is it any different this time? 

teslaberry's picture

wouldn't now be the perfect time for the fed to raise interest rates overnight by 5% if the u.s. military were preparing to shut down the legislative and judicial branches and enforce a coup.

i think it would be pretty sweet. overnight, ALL BANKS WOULD BE INSOLVENT. almost all.

all pension funds would have a 20%+ haircut or worse. and municipalities would cut everyone but police tomorrow morning.

vegas's picture

So, now we have the "Plunge Protection Team" [PPT] for bonds? The FED, ECB, and the BIS will allow the financial system to be destroyed before they ever give up control. Go ahead, sell your bonds; when you are finsihed we will show up and hit the "buy" button until you bleed.

 

www.traderzoo.mobi

Downtoolong's picture

Edward Quince to Citadel, “Janet likes QE4”.

Baa baa's picture

I just want a heads up on which street corner to be when the passing out begins.

Omega_Man's picture

why bother selling bonds... just print money and hand it out on the street corner

madbraz's picture

show me actual cash bond trading volumes, as opposed to charts for future markets, then I may believe in any of this.

 

point is that it looks like we are not seeing bond cash positions being liquidated - only futures speculative positions by hedgies and other "manipulators".  similar thing for the treasury cash market, there is no data to justify a 40+ basis point move in the last 2 weeks - not one economic data point justifies any of this (actually it should have pushed yields down).

 

my guess is that this is all orchestrated and it just happens that the NY FED would love nothing more than a steepening yield curve.  any talk of the contrary is nonsense.  steepening at this point, aka "reflation trades" have no merit in the real data world.

agent default's picture

I am sure there are some charts showing the spoofing of the spoofed quote stuffing spoof trying to spoof the previous spoof....

PrawnStar313's picture

that's what I was thinking to bra

RealityCheque's picture

Enjoy "reality" while you can.

Dr. Engali's picture

Reality is what comes next. But I know you know that already.