This page has been archived and commenting is disabled.
Treasuries Are Dumping After Bullard's "September More Likely" Rate Hike Comments
Overnight we saw a flush in precious metals, with no apparent catalyst, and now we are seeing US Treasuries extreme volatility as earlier strength extending gains from last week, are unceremoniously and suddenly dumped after Fed's Bullard warned markets that the probability of a September rate hike is now above 50%. Of course, thanks to meltups pre-market in FB, GOOG, and AAPL, stock indices don't care at all.
- *BULLARD: PRUDENT TO RAISE RATES OFF ZERO, GO MEETING-BY-MEETING
- *BULLARD: ECONOMY DOESN'T NEED EMERGENCY POLICY SETTING ANY MORE
- *BULLARD: GREECE, CHINESE STOCK MARKET MOVES WON'T HURT U.S.
- *BULLARD: ASSET PRICES NOT IN BUBBLE TERRITORY BUT IT'S A RISK
Suddenly Treasuries were dumped...
Though we suspect the kneejerk will retrace as hiking rates has been bullish for the long-end as of late.
Either way, we are sure that when rate hikes come, the market has it all priced in...
Charts: Bloomberg
»
- 14651 reads
- Printer-friendly version
- Send to friend
- advertisements -
Hey, Bullard threw out the "U.S. immune to other markets" bone!
Sure dude, go on and raise rates, just give us 1% and let us see how that goes.
Now I know you and Janet and the rest of the FED clowns are going to do 0.25% then put it back to ZERO at the next meeting - if you ever get around to actually raising rates - but go ahead and make it interesting, how about 2%?
C'mon, you can do it! What? You're going to talk about it for another 7 years?
indeed, these guys are fucking morons if they think September or any time is a good time to raise rates... they've painted themselves into a corner and they know it, they just won't admit it...
probability of a September rate hike is now above 50%
What a joke. So let me get this straight: You've been advising of a rate hike in Sept for 750 days now, and 50 days before the day, odds are now slightly above 50% of doing so?
So what were they 400 days ago? 10%?
Should any "authority" make public promises using 10% as the guiding probabilities? You guys are total asshats and have no clue what you're doing.
ZERO credibility.
ZERO foresight.
ZERO policy "tools".
rates up 2 bips today
No wonder Gainsville coins sent me an email offer last night. This explains it. Once the Ten year treasuries begin to take a dump you'll know the end is near.
Yep- don't give a crap about ten year, or any year- just keep having a firesale on PMs! Love to buy PMs with worthless fiat.
Gainsville coins is the fucking bomb my friend, price selection service.
I've been happy with APMEX.
And with SDBullion
double dog dare you, Janet!
Don't call Mr bitch cunt criminal, "Janet"
now this, ladies and gentlemen, is either the most important sign for the next years or the least important
blast me if I know which one it is. either the Dollar Complex survives for another "round of greatness", or... well, several scenarios, as usual
I wager it survives.
What are you willing to wager? Your life as you know it?
By all means...BUY US Dollars.
LMAO...
By this time next year you will regret your decision.
Deflatinns precede Hyperinflations.
And as the Asian Tiger across the Pacific is in trouble and we just cannot export any more of our inflation to them...well...it has to go somewhere, doesn;t it?
Knock yourself out. Long Dollars. LMAO.
What's your alternative global reserve currency?
do we need one? it finances a "global policeman" that keeps commodities flowing and sets "global standards". if you think we all need that, then of course we need one, and King Dollar is there to stay
That's not my point.
But his answer was directed toward exactly what you asked.
If that is not your point, then perhaps you need to state your point.
But the PLAN by the Global Elites is that the US DOLLAR DIES.
It will be replaced by the Special Drawing Rights, a ONE WORLD CURRENCY for a ONE WORLD GOVERNMENT, managed by our "friends" at the United Nations, the World Bank, and the International Monetary Fund.
Now I reject GLOBALISM, as Ghordius so eloquently stated. I am diametrically opposed to it. We do not need it.
But that is the PLAN after all.
The entire collapse can not have been better engineered.
The setup...
The pitch...
The strike...
The play.
And I will wager on Gold and Silver for the transition to the other side.
We might see some or all of what you suggest when the whole play concludes.
But all plays have acts.
And as this act draws to a close the villain, the USD, has not yet met his demise.
Cleanest dirty shirt, whatever you want to call it, troubled times call for a safe haven.
And we all agree these are troubled times.
that's the BRICs alternate plan, yes. I would not call it the "Global Elites" plan, they are less dependent on any currency then anybody
China is cooked. The BRICS don't have the Bond Market setup to pull it off.
I think that it will fail anyway. The loss of confidence in regional currencies will cause massive distrust for any replacement.
And the Global Elites understand that currencies are merely liabilities rather than assets. They are positioning to take over all assets..or as many as tey can.
But a single currency has the affect of destroying the Foreign Currency exchange and sets the Elite up as a hedgemon, replacing the United States. If a Nation State does something which displeases them then they sanction the Nation State...like the USA does with Russia or other Nation States currently.
That is the advantage of controlling a One World Currncy. There will be NO OTHER ALTERNATIVE this next time around. There will be no competition allowed. And every Nation State affectively loses their Sovereignity.
Of course I will do all that I can do to fight this development as it is antichrist. But it will happen.
If the Euro can survive and the Yen can survive, surely the Dollar can as well.
Whatever happens, when it all goes down, the Yen goes first.
mmmhh... the difference between the USD and all the others is still... foreigners
for the Yen, for example, it would have to be the loss of confidence of the Japanese themselves
the USD is still insofar exceptional that it's the only currency where it's all about foreign confidence... including foreign central banks, btw, which somehow makes the situation even less clear cut
sorry if this offends national sensibilities, but that's the way it is, it's not in the hands of the American People... literally
c'mon now, you're being flippant... either the US runs the world with the petrodollar or it doesn't... if it does, it's entirely in the hands of the US as to which way this goes... people can't run around yelling King Dollar then flip 180 degrees the next second and declare the USA is going down and is powerless to stop it, yay woot... it's one or the other, which is it?
actually I see my biggest fault as being incredibly arrogant. if it came over as flippant, I would like to apologize for it, it was not my intention
either the US rules the waves, or it does not, yes. the petrodollar is only one aspect of King Dollar, but yes, a very important one, and depends from it
but my point is that the whole is not in the hands of the US... only. China comes to mind
Not interested until it starts hitting the 10 year.
When it does, Yellen will print some American exceptionalism and solve the problem without delay.
or she calls Washington to urge foreign CBs to buy lots of $ugar bills and bonds. nothing new, actually
which they will... hell, they are...
Japan is a basket case.
Europe is in a mess.
China is shattering.
The Derivatives Market is so imbalanced that it is imploding.
Who in the hell can buy it?
We cannot any longer export our inflation.
End Game. It is over. Can hardly wait for the collapses in September.
It is coming home to roost.
If "this" is real interest rates above zero, it would certainly be the most important economic event since ZIRP. Current un-payable debt (sovereign, corp and private) would become even more un-payable. It would lead to economic collapse and global conflict in short order. Debt defaults won't be resolved peacefully.
If "this" is nominal interest rates above zero but less than inflation, then it is just much ado about nothing. Lenders (those who produce more than they consume) continue to lose and borrowers (those who produce less than they consume) continue to win. Collapse and global conflict will come when lenders can't or won't lend - date uncertain.
The central banks seem to think they can compensate for debt defaults by creating money to cover them as they occur. Greece seems surprised Germany won't go along with that. That isn't working because people are smart enough to see that they can borrow and never repay because the central banks "have their back".
Elites have contempt for common people. That is the mortal sin of hubris manifested. People are smart enough to realize that in a world dominated by the utopian idea that real goods and services will be apportioned by the dictum of "from each according to their ability and to each according to their need" that it pays to have no abilities and huge needs. The global "Free Shit Army" is smarter than you think.
Another problem is that created money does not represent real goods and services like earned money. Created money represents unpaid debt, which is truly nothing.
I have no idea whether the Dollar Complex will have another round of greatness or not. The next round of greatness goes to the central bank that creates the least money representing nothing.
"The next round of greatness goes to the central bank that creates the least money representing nothing."
+1
http://finance.yahoo.com/news/barclays-plans-cut-more-30-000-jobs-times-...
Bullard giveth, Bullard taketh.
Looks a bubble looking for a PIN to me
No doubt Fed wants to continue the PM attack.
Someone forgot to tell Bullard that all US economic numbers are fake:
US inflation numbers are completely fake - so real US GDP is much, much lower:
The Chapwood Index for 2014 was 9.7% and official CPI in the land of the free was only 0.8%. So the Nominal GDP of 5.6% for 2014 becomes real GDP of -4.1%.
The revised real GDP for years 2011 to 2013 worked out to -6.2%, -6.5%, -6.5% respectively.
What is the Chapwood Index?
"The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation."
http://www.zerohedge.com/news/2015-05-29/inaccurate-statistics-and-threa...
Numbers do not matter to this group!
This is what the 50th time this game has been played by the Tribe?
Bullard is so fucking gay.
.25% isn't going to get anything accomplished except maybe making it even easier for banksters to skim more billions.
The Fed has been threatening this rate hike for what? Three years?
Ass-clowns, the bunch of them.
As they say in certain circles, "stay calm and carry on."
(Seriously, though, I'd love to see a market crash and WTI crude at $35/bbl.)
IMO ... Just the usual Rate Hike Rumor ... to tank Gold ...
... in preparation for the next QE .... as usual.
iN THE END-WHATEVER THEY DO WILL NOT STOP REALITY. DGAF. MINE GOLD-GUNS-AMMO-FOOD-WATER.
iN THE END-WHATEVER THEY DO WILL NOT STOP REALITY. DGAF. MINE GOLD-GUNS-AMMO-FOOD-WATER.
The dumping of longer term Treasuries could be the market's way of saying a Sep rate rise is more likely....but the key is to watch if the pattern sustains.
Ignorant mother fuckers at the FED will nevet get out of the fucked up mess they created. You are not going to raise rates motherfucker at least not to any meaninful level, Just shut the fuck up and keep smashing Gold , Bullard. Got it ass hole?
No catalyst for gold?? The rate rises by the FED are your catalyst.
Equities rising and FED are running out of time.
I love the smell of overvalued equities in the morning.
Only means the harder they will crash.
Either way, we are sure that when rate hikes come, the market has it all priced in...
...nothing like a good chuckle to start the day with.
Each time the Federal Reserve has started a rate hike program, the rate of growth for business profits after tax begins to fall rapidly.
Today, the rate of annual growth for business profits after taxes have already fallen into recessionary levels.
A rate hike now will move business profit growth for both the last three and five years below zero.
Even during our recessions of 92, 2001, and 2008, the rate of profit growth over three and five year periods never fell below 0.
Raising rates will be catastrophic.
Whenever Bullard opens his yap, I experience the same sensation as when Maxine Waters asks a question during Humphrey-Hawkins testimony: they’re both so clueless, it hurts my brain to think we live in a country where people like this can rise to positions of power and responsibility.
To put it as simply as possible... The Fed will NOT raise rates until Obama is out of office. "If" he ever leaves office.
Sell China sell and buy gold!