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Did The World's Central Banks Hit The Panic Button This Morning?
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'.
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Skynet bought the dip
bond...james bond
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.
They're destroying our world to save their tin god charade.
Wonder if they're testing for when the whole thing blows up.
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...
THere is only one button to press at the Fed and it is the "PANIC" button.
:)
MAY THE FARCE BE WITH YOU!?!
OOPS etc...
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.
Jade Helm shelter in place. Let her rip.
>>>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).
except in gold
Why do I never get the buy buy buy email. Is it stuck in my spam folder
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
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.
Its going to whether TPTB are ready or not.
You can bet its rigged....it has to be....all is well ..move on...
the real question is how many more times they will do it, many BTFD opportunities coming :)
so.. it's all good again? i should buy stock right? right?
This avalanche is ready to go!
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.
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?
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
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".
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.
that was fonzanoon's prediction, a couple of years ago
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.
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
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
Can Warren save Greece? Does it really matter? Pour another scotch. Fuck it.
What do bond vigilantes rising from the dead look like?
Just watching these record swings tell you things are breaking on many levels.
Indeed it does, and the knowledge that there will come an equal and opposite reaction tells of the magnitude of the reversal.
Old book titled "Actions and Reactions" by Roger Babson (1936).
Point: There's nothing new under the sun.
What kind of Scotch goes well with a bond crash????
single malt...
;-D
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?
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.
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
Edward Quince to Citadel, “Janet likes QE4”.
I just want a heads up on which street corner to be when the passing out begins.
why bother selling bonds... just print money and hand it out on the street corner
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.
I am sure there are some charts showing the spoofing of the spoofed quote stuffing spoof trying to spoof the previous spoof....
that's what I was thinking to bra
Enjoy "reality" while you can.
Reality is what comes next. But I know you know that already.
Central banks have become highly geared hedge funds trying to make money to cover the deficits - if you think this is going to end well you need your head felt.
No interest rate rise - enter QE Next
There will be no controlled decline in anything, because no matter who sells and how much he sells the CBs will always be there with newly printed fiat to buy. Even if this means that 90% of everything will end up in the hands of CBs, they will always keep buying, no matter what the market sells. This will not end in a crash. It cannot end with a crash because there will always be the buyer of last resort who will prop prices to whatever they have to. This will end either with revolution or the whole markets thing will just fade into irrelevance taking currencies with it.
YeeeeeeeeHaaaaaaaaa BTFD.
Someone must have seen me set up a TreasuryDirect account.
I pointed this out yesterday. Bill Gross is just talking down bonds - so he can make money. WHY do you think he comes out with these media-capturing headlines ... The German 10-Year is the Short of the Century. He's NOT doing it for the interest of the public.
OF COURSE Central Banks will protect the bond markets. Central banks would RATHER sell the pearl necklace that belonged to their own grandmother to raise money ... compared to ADMITTING that their entire viewpoint is wrong! They will sell the entire goodness of a nation down the drain, to save their own stuffy reputations!! BEWARE!!
Actually, it may turn out that their view point is right. The might be you are not looking at it the same way they are. You think they are working for our collective well being. Ask yourself, what if they are working to enslave us all? From that view point, well....
Faster than a speeding PPT trader at his keyboard, more powerful than any head of state, able to leap tall stacks of fiat in a single keystroke....it's STUPOR FED to the rescue! Starring Ms. Debtfire, Super Mario and special guest appearance by Ben Berspankme as the helicopter pilot...
Everything about this market bubble can be summed up here...
https://www.youtube.com/watch?v=XnE8RitIN4s
All this proves is the "Central Planner" have the ability, using new tools, to prop up any market with a few "key strokes". Therefore it will continue upward until they, the Central Planners, decide to do otherwise. Expect the "bull" to continue forward, sideways and upward until they are ready for the "grand theft" of IRA's, 401K's, 403B's and pensions. When? No one knows the timing, but we can clearly see it will happen.
Yep, implode the system by design. Then when the sheeple are scared shitless and desperate, unleash the biggest financial bazooka of all time. A govt. backed "safe" investment vehicle to replace the broken Soc. Sec, IRA, 401K, Pension debacle that the very same govt, Fed, and Banks destroyed. Hello MyRA. Medicare and Medicaid have all been "fixed" with 0zer0care. Mortgages are owned by the Fed. All that is left is retirement funds. This was all telegraphed long ago.
Any word on Russian (and Chinese) military manoeuvers...? That's about the only barometer I use anymore (or can trust), as to which way the wind is about to blow.
Correct me if I am wrong, but if you own and control the "print button", you can jump into any market and buy whenever and everything if need be.
Am I missing something? This can go on forever correct?
As long as rates don't rise it's ok, it can go on. But eventually if due to higher inflation central banks ought to increase rates the papers they sit on loose value because they hold 0 interest and the blown up balance sheet CBs sit on turns negative and that's when things will get interesting because then the entire "taking liquidity out of the system" capability breaks down...
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 the 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.
What will stop them? DEMAND.. You can't puch a product that no one wants and when that product drags down other products, like income, then over all demand reduction ends the game. Ther will be no percentage to play.
You know, there used to be a time when this sort of thing would have been all over the news and and a bunch of folks paraded in perp-walks. But nowadays folks just shrug off the latest sneaky fiddle as nothing to be concerned about. After all, it's for a good cause, right?
The Rule of Law died long ago. The USA is in it's death throws. The New Feudal World Order is upon us.
True... read UPS' user agreement.
It was just a lone trader, in his bedroom on a ZX Spectrum. Nothing to see here, move along.
I dont blame the people for selling their bonds...they are getting top dollar for them....its the people that are buying them....they are going to lose...or if it is the CBs ..they will own them all at some point..then what...is that when they lose the fiat faith.....that is when the world will have to make a decision....is this life I am leading real or is it fake....????
come over here dirt. hide under this rug. don't come out until I say so.
Maybe Kyle Bass is right and the June rate hike is still on the table?In any case why would anybody put their hard earned money into anything to do with debt in the EU?Koo-koo
http://www.cnbc.com/id/102657420
Whatever is going on, it doesn't appear to be helping metals prices.
Indeed the June-hike will come. Centralbanks have to rule for liquidity in bondmarket that is not very liquid and not only in EU.
Technically, the elite 1% should lose their asses on both their stock and bond portfolios, if the real economic and fiscal situations were priced in. But there is no price discovery, so the elites remain rich as a bitch. The central banks manipulation is all meant to keep that 1%'s asset classes up, so the elite remain rich, and enjoy all the income gains the entire world economy can generate. Some defend this system as a free market, but they can fuck off! It is manipulation and money printing, nothing free, nothing fair, simple central bank manipulation in aid of the 1%'ers.
Jack, you're off on that 1%.. more like 00.01%. Incomes of over $10M.
Bond Bond ..Junk Bond.!
IF the U S educational system was so great, Zero Hedge would be required reading.