2-Year Treasury Yield Highest Since April 2011

Tyler Durden's picture

2 Year Treasury yields have jumped 4.5bps today, breaking to 77.4bps - the highest since April 2011 as it appears (despite the 30% odds of a rate hike priced into the ED curve) Fed jawboning is creating front-end selling (in the face of weak data). Notably this is the same level that 2Y rates traded at in Dec 2008 after the initial tumble post-Lehman.

 

Charts: Bloomberg

But...

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RopeADope's picture

It might have something to do with Jack Lew having a panic attack over funding.

max2205's picture

Shut the bitch down 

pods's picture

And yet, it has still never been a better time to buy a (house, car, education, anything else that increases the debt).

I have a question for smarter ZH'ers.

If a FED bank can borrow at 0% (roughly) from the FED, then buy these 2Y that pay 0.7%, is that not just like printing profit?

I think I am going to open up a bank.

pods

KnuckleDragger-X's picture

Don't forget, they have the Treasury involved as a cut-out for legal cover.....

Fish Gone Bad's picture

@PODS - opening up a bank is really not that easy.  The truckload of money one needs is just the start.  Probably something about thieves not liking competition and what not.

3rdWorldTrillionaire's picture

Opening a credit union is actually really simple and you only need roughly $25k... I actually researched the idea of opening a pot-focused credit union in CO (and only CO). Feds shut me down? Great, I become a historic Supreme Court case...

Rent a trailer, group together some dispensaries for startup capital, off to the races...

aliki's picture

more selling out of china so they can keep the shanghai composite north of the 3,000 line

given the data today, theres no way the ball-less fed raises this week. its the final brick of excuses they need to complete their wall of fear

Oldballplayer's picture

They raise now because if they do not, the market will crash anyway.  At least this way they can control it and get their cash out first.

KnuckleDragger-X's picture

If they do, it'll be 10 bps.......

buzzsaw99's picture

worst since lehman?

KnuckleDragger-X's picture

Lehman had to die to protect GS. Taking one for the team don'cha know.......

Soul Glow's picture

And Bear Sterns died for JPM.

oak's picture

china might sell more ust, if the meeting between xi and obama would be bad.

Soul Glow's picture

Inching back to "normal" has never lasted so long.

Seasmoke's picture

It's getting clearer now. All is not well.

Chuck Knoblauch's picture

Squeel like a pig, boy.