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10Y Slides Back Under 2%, Precisely What Goldman Said Could Not Happen

Tyler Durden's picture




 

Remember trade #2 from Goldman's list of top trade recommendations for 2015?

 

Um, yeah.... well, moments ago the 10Y just dropped below 2% for the first time since April.

End result: tomorrow, Goldman's cafeteria will once again be proudly serving Kermit flambe.

 

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Sun, 08/23/2015 - 22:38 | 6460257 holdbuysell
holdbuysell's picture

And heading to 1% or lower.

Sun, 08/23/2015 - 22:45 | 6460289 Boston
Boston's picture

Yes. And the time to get out of UST's will be when US equities are down not 5%, not 10%, not 20%, but much more.....from peak. It will happen, and until then, you can comfortably and safely be long US Treasuries. And you get paid to wait. I've been long UST's since late 2013 and have been making a ton of money since.

Sun, 08/23/2015 - 22:48 | 6460310 NoDebt
NoDebt's picture

That strategy will work well until they flip the switch from deflation to hyperinflation.  

Sun, 08/23/2015 - 22:50 | 6460328 Boston
Boston's picture

Yup, and that's why I also own gold.

Sun, 08/23/2015 - 23:05 | 6460401 El Vaquero
El Vaquero's picture

Sure, but it is something that you might actually be able to time.  The bottom of the stock markets would be a good time to get out.  

Sun, 08/23/2015 - 23:24 | 6460480 johngaltfla
johngaltfla's picture

Goldman lied.

Pensions died.

Mon, 08/24/2015 - 01:58 | 6460900 ThroxxOfVron
ThroxxOfVron's picture

Whew!  

Bonds up near record highs just as China and Saudi Arabia need to unload tens of billions a week.

Who coulda seen that commin'?

Mon, 08/24/2015 - 03:34 | 6460995 FreedomGuy
FreedomGuy's picture

I have a small amount of joy as over 95% of my long term investments are in treasuries and money markets. Frankly, I do not like any market since everything is manipulated but I refused to play in the stock market game which is the end point of the manipulation. The point was to corner money into it and I refuse to follow the lemmings. 

The other danger is competitive currency devaluations worldwide. Even Switzerland caved a couple years ago. 

Sun, 08/23/2015 - 22:40 | 6460259 kliguy38
kliguy38's picture

that's simple enuff they were long the bond

Sun, 08/23/2015 - 22:41 | 6460265 TeamDepends
TeamDepends's picture

We're on an express elevator to hell, goin' down!

Sun, 08/23/2015 - 22:42 | 6460272 Truther
Truther's picture

I can hear Yellen yellin' on the way down.

Sun, 08/23/2015 - 22:44 | 6460283 NoDebt
NoDebt's picture

Somebody wake up Hicks.

I say we nuke it from orbit.... (you know the rest)

Sun, 08/23/2015 - 22:52 | 6460324 Closet Boy
Closet Boy's picture

Damien Express Elevator

http://dai.ly/x11gx3

Sun, 08/23/2015 - 22:41 | 6460267 booboo
booboo's picture

muppets are used to having a fist up their ass.

Sun, 08/23/2015 - 22:42 | 6460269 ThisAmericanSadhu
ThisAmericanSadhu's picture

Ah I just figured it out!

I believe "they" are about to break the 30 year trend line of gold and silver. It is the one chart that all central banks and currencies use, as it is the same. A break here sends it to 100 and beyond. This would make silver no longer even a monetary metal, but purely industrial like copper. Gold would be the only reserve currency. This has been what all the manipulation has been about for some time. It would also make the coming metals bull market make the gains stronger in gold then silver, which has not been true only for the last 50 years or so, or even less. What do you think?

The point is, convert all phys silver to gold at this moment. ASAP!

The point of this is to warn all metaltards, convert phys silver to gold now! Immediately! The paper markets can do this faster then the phys! There are no inventories because the world has not starting converting yet! That's the reason for tight inventories! Woh!

Mon, 08/24/2015 - 01:59 | 6460901 ThroxxOfVron
ThroxxOfVron's picture

Thanks, Bungholio!

Should I rent a vault in Swissyland while I'm at it?

 

SCHMUCK.

Mon, 08/24/2015 - 04:16 | 6461020 Squid-puppets a...
Squid-puppets a-go-go's picture

listen, you twit. 'They' cannot dictate whether silver is regarded as a monetary metal or not. It is indelible to our culture that silver is valuable and thats something decades of propaganda wont erase. And then, silver has the similar properties to gold that make it timelessly valuable: it doesnt rot, rust or combust, its infinitely divisible etc etc - the perfect vehicle for an oligarch to stash in his vault knowing his great grandkids who fuck up the business empire will still be able to save their bacon with bullion

Sun, 08/23/2015 - 22:44 | 6460279 Mr. Guts
Mr. Guts's picture

Why is the 10Y falling?

Sun, 08/23/2015 - 22:45 | 6460288 Bunga Bunga
Bunga Bunga's picture

Because of if panic, panic first.

Sun, 08/23/2015 - 23:10 | 6460427 Money Counterfeiter
Money Counterfeiter's picture

More K-Y for the peasant rapes.

Sun, 08/23/2015 - 22:46 | 6460291 NoDebt
NoDebt's picture

The INTERST RATE on the 10Y is falling because its price is RISING.  Yields move inversely to price.

Short version:  people with money are freaking the fuck out and headed into "safe haven" assets like TSYs.

Mon, 08/24/2015 - 02:02 | 6460905 ThroxxOfVron
ThroxxOfVron's picture

"The INTERST RATE on the 10Y is falling because its price is RISING.  Yields move inversely to price.

Short version:  people with money are freaking the fuck out and headed into "safe haven" assets like TSYs. "

 

...OR, China, Saudi Arabia, and a few others might all want/need to sell at top dollar and are thus crashing the equities markets instead of propping them in their command and control economies..  

Sell the Bonds at new highs to get the 'international investors' out of their markets, and buy choice productive assets at new lows/discounts.

Sun, 08/23/2015 - 22:46 | 6460299 Truther
Truther's picture

Just because..... It wants to join the party to hell.

Sun, 08/23/2015 - 22:44 | 6460281 Bunga Bunga
Bunga Bunga's picture

...cause they sold treasury shorts to their "valued" customers.

Sun, 08/23/2015 - 22:46 | 6460293 jldpc
jldpc's picture

heavy volume plunges on all usa stock indices - every 3-5 minutes - this is getting serious

Sun, 08/23/2015 - 22:46 | 6460298 ebworthen
ebworthen's picture

Don't forget Piggy on a stick!

Sun, 08/23/2015 - 22:48 | 6460309 Truther
Truther's picture

How about Yellen on a stick.

Sun, 08/23/2015 - 22:46 | 6460300 Two Theives and...
Two Theives and a Liar's picture

What happens when they turn the machines on at the NYSE tomorrow? WILL the machines turn on tomorrow?

Mon, 08/24/2015 - 04:18 | 6461022 Squid-puppets a...
Squid-puppets a-go-go's picture

declaring 'self help' in 3....2....

Sun, 08/23/2015 - 22:47 | 6460307 jldpc
jldpc's picture

dollar is being punished hard -.825

Mon, 08/24/2015 - 00:09 | 6460659 SeekingNuNormal
SeekingNuNormal's picture

not against asian currencies

Sun, 08/23/2015 - 22:49 | 6460317 Victor E. Overbanks
Victor E. Overbanks's picture

Guys! Just round up. Its going to be ok. Guys?..... GUYS!?!?!

Sun, 08/23/2015 - 22:50 | 6460323 jldpc
jldpc's picture

the selling is accelerating on all us indices

Sun, 08/23/2015 - 22:56 | 6460351 Omega_Man
Omega_Man's picture

Attn all Goldman staff... please come to the roof of the bldg and prepare to jump in unison

Sun, 08/23/2015 - 23:34 | 6460520 runswithscissors
runswithscissors's picture

let there be blood in the streets

 

Sun, 08/23/2015 - 22:56 | 6460353 Dr. Engali
Dr. Engali's picture

Precisely what I said long ago. I'll start selling treasuries when the ten year yields 1%.

Mon, 08/24/2015 - 05:26 | 6461066 buzzsaw99
buzzsaw99's picture

agreud.

Mon, 08/24/2015 - 06:25 | 6461139 NoVa
NoVa's picture

suggest your sell poiint in US10T yield is 1.35 in US10T yiled.  Depending on market conditions, we could see 1.15% in yield.  Reasons:

Emerging market currency devaluations and economic (equities) malaise.

Oil excess production / supply & and increasing absence of demand.

Flight to safety of US Treasuries.

 

NoVa

 

Sun, 08/23/2015 - 23:16 | 6460456 q99x2
q99x2's picture

Stop the end of the world. Arrest Lloyd Blankfein.

Sun, 08/23/2015 - 23:24 | 6460482 lbrecken
lbrecken's picture

Hmmm.....just like oil fundamentals right GS?

Mon, 08/24/2015 - 00:17 | 6460674 Rathmullan
Rathmullan's picture

yeah, but what did goldman's prop desk bet would happen? 

Mon, 08/24/2015 - 00:25 | 6460703 e_goldstein
e_goldstein's picture

muppet fuckers

Mon, 08/24/2015 - 00:35 | 6460734 AGORACOM
AGORACOM's picture

Goldman knew it WOULD happen & they sucked everyone into selling Treasuries. $GS = Lucy Wall Street = Charlie Brown

 

George ... The Greek ... From Canada

Mon, 08/24/2015 - 01:18 | 6460844 no pain no trade
no pain no trade's picture

That trade reco may have been for "muppets only" and not for GS own traders.. that should explain it.. 

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