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Treasury Yields Are Tumbling

Tyler Durden's picture




 

After 3 days of carnage and a day of stability, it appears the death of the bond bull market has once again been greatly exagerated. Whether it is China's absence after a strengthenig in the Yuan overnight or month-end rebalancing amid equity vol, Treasury yields are notably lower this morning...

 

 

but remain significantly higher on the week for now...

 

 

Charts: Bloomberg

 

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Fri, 08/28/2015 - 09:13 | 6481066 GMadScientist
GMadScientist's picture

Fed sphincter buys what?

Fri, 08/28/2015 - 09:17 | 6481080 buzzsaw99
buzzsaw99's picture

recent ust volatility hasn't puckered my bunghole

Fri, 08/28/2015 - 09:25 | 6481121 Bunghole
Bunghole's picture

Does this look puckered to you?

Fri, 08/28/2015 - 09:33 | 6481155 gmrpeabody
gmrpeabody's picture

Where did you get that...?

Can anyone get one?

Fri, 08/28/2015 - 09:55 | 6481264 TeethVillage88s
TeethVillage88s's picture

I was wondering too.

Fri, 08/28/2015 - 09:19 | 6481091 SandiaMan
SandiaMan's picture

China bond sell-off showing its ugly head

Fri, 08/28/2015 - 09:23 | 6481112 I am a Man I am...
I am a Man I am Forty's picture

but but but china is selling treasuries!!  Alarm!  Alarm!  How can this be?!?!?

Fri, 08/28/2015 - 09:27 | 6481126 NoDebt
NoDebt's picture

There's a big demand around the world for high quality collateral.  LOL

Hey, it wasn't long ago ZH was warning that Treasury markets were made too thin by all the QE.  Now maybe they're filling in the thin spots.  Kind of like that spray-on "hair in a can" they used to sell on TV.

 

Fri, 08/28/2015 - 09:31 | 6481147 Irishcyclist
Irishcyclist's picture

Am I missing something? When bond yields fall that's a sign that bonds are in greater demand?

 

German bonds have negative yields meaning that investors pay Germany for the privilege of buying their bond.

Fri, 08/28/2015 - 09:39 | 6481179 NoDebt
NoDebt's picture

No, you're not missing anything.  You're exactly right.

Fri, 08/28/2015 - 09:51 | 6481234 AbbeBrel
AbbeBrel's picture

If you pull up the chart on $USB 30 year bond price, it looks like one massive 2015 long H&S to me.

Makes sense if all the former go-go BRICS are selling off their reserves to put out fires at home. Fed already has a de-facto rate hike, especially when you "add in" $10 Trillion of USD based in-country (but US off-shore) debt and a stronger dollar as one helleva dollar short squeeze.

Emerging markets are Squirming markets now.

Fri, 08/28/2015 - 09:58 | 6481276 Sophist Economicus
Sophist Economicus's picture

The Fed will buy any and all US debt. Anyone who shorts these things is an idiot

This will be a strange new market - the dollar will ultimately collapse and govt bonds will yield zero

Fri, 08/28/2015 - 10:02 | 6481301 TeethVillage88s
TeethVillage88s's picture

And TBTF Came out 2 months back and said there would be buyers.

Plus Japan, Luxembourg, Switzerland, United Kingdom seems to be buyers.

Fri, 08/28/2015 - 10:00 | 6481288 TeethVillage88s
TeethVillage88s's picture

What is going on in Luxembourg?

Anyone know?

External debt, the total public and private debt owed to nonresidents

Here is a table on External Debt from Wikipedia based on WB, IMF & CIA World Fact Book Data.

Rank, Country, External debt, US dollars, Date, Per capita US dollars, % of GDP,
1, United States, $18,540,448,667,000, 2015, $58,437, 106%,
2, United Kingdom, $9,590,995,000,000, 2014, $160,158, 406%
3, France, $5,750,152,000,000, 2014, $86,317, 222%,
4, Germany, $5,546,869,000,000, 2014, $68,720, 145%,
5, Luxembourg, $3,472,282,000,000, 2014, $3,696,467, 3,443%,
6, China, $3,000,000,000,000, 2013, $2,220.57, 37.5%,
7, Japan, $2,861,488,000,000, 2014, $24,000, 60%,
8, Italy, $2,651,413,000,000, 2014, $43,621, 124%,
9, Ireland, $2,639,672,886,310, 2014, $52,227, 103%,
10, Netherlands, $2,526,895,000,000, 2014, $226,503, 316%,
11, Spain, $2,305,648,000,000, 2014, $52,045, 167%,
12, Switzerland, $1,610,897,000,000, 2014, $154,063, 229%,
13, Australia, $1,395,638,000,000, 2014, $52,596, 95%,
14, Canada, $1,337,445,000,000, 2014, $29,625, 92%,
15, Belgium, $1,286,918,000,000, 2014, $113,603, 266%,

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