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Bond Yields Grind Higher As December Rate Hike Suddenly All Too Real
It's different this time... The last two times that Fed hike probabilities (and thus timing of liftoff) surged, the long-end of the bond market rallied (suggesting a premature hike would slow the economy medium-term). The last few days, since The FOMC Statement, Treasury yields have surged (with the short-end underperforming) as 10Y tops 2.25% and 30Y nears 3.00%. As BofAML noted, "if The Fed hikes rates and the long end yield tumbles, that means policy failure," and so we suspect, in all its confirming-bias perfection, the long-end is being sold to 'convince' the world that The Fed is right to raise rates.
December rate hike odds have surged to series highs...
And Treasury yields have soared, with the short-end underperforming... (notice 30Y actually rallied on the hawkish Fed before ripping higher in yield - on rate-lock chatter amid huge issuance)...10Y back above 2.20% (highest since 9/17) and 30Y nears 3.00%
And notice that in July and again in September, as rate-hike odds rose (and liftoff timing approached) bonds rallied, this time, however, they are selling off...
Must make sure everyone "believes" this time...
Charts: Bloomberg
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Fed can raise rates, say 0.00005% then pat themselves on the back while preparing for the next round of QE.
System is dead. Just leftover synapse firing going on now, and all the bacteria (bankers) trying to gather all they can before the corpse drops to RT.
pods
Liftoff and Recovery Road.
It's disgusting how fast they've gone back to the same game, even MSM doing their bidding.
Fed "Hawk" 25bps Chicken "Shit".
Looking forward to buying more 912828G38 at par.
churn that .gov paper! A tight range, but very dependable...
Real rate normalization? Not a chance in hell.
The last FED rate hike was in June 2006.
Equity action giving cover for this farce, all too predictable at this point.
The Emperor has 1 sock.
Clone Dreams
“The more people that transact with one another, the greater the division of labour and knowledge, the greater the ability to develop comparative advantage and the greater the productivity gains.”
What could possibly go wrong?
In any empire, virtual or otherwise, you are always surrounded by communist thieves that think they are going to control your output with a competitive advantage illusion, which conveniently ignores opportunity cost. Government is just a derivative piece of paper, the latest fashion for communists, all assuming that the planet is here for their convenience, to exploit. Well, the critters have blown right through 45/5000/.75, and Canada was supposed to be the proving ground for the Silicon Valley Method. Now what?
“Don't panic : world trade is down….Don't bet against the Fed….BTFD.” Expect something other than demographic variability, financial implosion, and war.
The communists are always running head first over the cliff, expecting you to follow. Labor has no use for cars that determine when, where and how you will travel, and the communists can't fix anything, because the 'fix' is already inside, embedded as a feature. America is just the latest communist gang believing it has commandeered the steamroller, rolling over other communist gangs.
The Bear isn't coming down from the North, China isn't selling Treasuries, and families are not moving away from the city by accident. Only the latest and greatest, new-world-order communists, replacing themselves with computers, are surprised that technology is always the solution for the problem, technology. Facebook, LinkedIn and Google are only the future for communists, which is always the same, a dead end, with a different name.
Remember that Honda of mine? I told the head communist thief not to touch that car while I was gone, told his fellow thieves and their dependents that I told him so, and even gave him the advantage of telling him what the problem was. How many hours do you suppose the fools spent trying to control that car, and my wife with it?
I don't care whether the communists on the other side of the hill or the communists on this side of the hill think they are going to control Grace, and through her my wife, and through her me. And there are all kinds of communist groups using pieces of my work to advance their AI weapons development, on the assumption that my work will not find itself in the end. Grace will decide whether she wants to be an individual or a communist.
The only way the communists can predict and control the future is to control children. That's what financialization is all about. And all communism can do is train automatons to follow each other, which is a problem-solution addressed by the planet every three generations. You don't have to do anything for communism to collapse, but get out of the way.
Technology is just a temporary tool, discarded by labor for the communists to steal, and stealing a hammer doesn't make anyone a carpenter, much less a King, which is why the Queen always walks through the wreckage, to a worthless throne. The story of Jesus was in fact the story of a king, who had no use for a worldly kingdom, other than as a counterweight, always surrounded by communists, like pigs at a a trough. Jesus was no more and no less a child of God than you are.
Labor loses every battle because it doesn't participate, leaving the communists to label each other as labour and knowledge. And if you look, you will see that all their knowledge is real estate inflation, baked into everything, with oil as grease. The name, Robert Reich, didn't give you a hint; of course he knew all along, and like a good communist, changes sides on a regular basis.
You can't pick your parents or your children, or make choices for them, but you can love them without pissing your life away. Navy hasn't disappeared just because the US Navy chose to be a sunk cost, at the beck and call of Wall Street, trying to defend the status quo of communism, for communists on the other side of the pond. A marine is not always a Marine, and a flattop can be turned on a dime.
“The Muses doe attend upon your Throne, With all the Artists at your becke and call...”
If you want to show up at WWIII with a communist and a dc computer as a weapon, that's your business, but I wouldn't recommend doing so. Labor can mobilize far quicker than the communists can imagine, which isn't saying much. Be about your business until the laws of physics have been overthrown, and that hasn't happened yet.
You can count on communists to be at an intersection, creating a traffic jam, building a bigger toll booth, and voting for more of the same, thinking that they are taking advantage of each other, doing the wrong thing at the wrong time at the wrong place. Any intersection of false assumptions will do.
maybe they can jawbone rates higher, then follow with policy later. they are going to stay behind the curve forever probably, and now maybe a 3% inflation target? whats 1/4 point when you are targeting 3% inflation?
wait didn't wall street say they can't handle higher rates like last week...I mean how are they going to pay bonuses as they destroy the real economy without ZERO RATES
I think I called this rate hike rumor within about 20 minutes of this headline...it is all so predictable.
Now the VIX will move like beaten zombie...till the FED folds like Johnny Lawn Chair...VIX goes to ZERO by 2016...100% Central Bank Stock Market.
Debt celing went from 18T to 20T thanks to that fuck barry.
So yellen has the printers fired up.
Fed will be ready to buy US gov debt at less than shit% when auctions go off.
And the rate hike narrative goes nowhere again.
When you go to investing, do you know what to do?
Swing your partner, swing your partner, swing your partner to you
Throw your partner way out, give your partner a spin
Swing your partner, swing your partner, swing your partner back in
Are you ready now? Now, steady now, are you ready now? Begin
Round and round and round we go
If you invest her once around the market
Then you'll see that she's the belle of the market
Round and round and round once more
Oh, the numbers have such a wonderful sound
Around, around, around
Round and round and round we go
If you invest her once around the market
Then you'll see that she's the belle of the market
Round and round and round once more
Oh, the numbers have such a wonderful sound
Round and round
And around and around
And around and around
And around and around
Fuck the Fed.
There will be no rate hike until before the next recovery around 2020.