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Futures Market Halted After "Violent" Treasury Reaction To Jobs Beat
"The most liquid capital markets in the world," were halted for 5 seconds this morning as "great news" on surging jobs sent bond markets into turmoil...
All in all, the authors conclude that "the current state of Treasury market liquidity [is] fairly favorable," but do concede that "the events of October 15 and similar episodes of sharp, seemingly unexplained price changes in the dollar-euro and German Bund markets have heightened worry about tail events in which liquidity suddenly evaporates."
Why yes, yes they do "heighten worries" because as you can see from the following, market depth just seems to disappear out of the clear blue nowadays.
We also noticed that at the end of the article, the authors promise to ferret out the causes of such anomalous events "in a future blog post."
To the NY Fed we say this: we know the good folks at 33 Liberty have more important things to do (like running the equity plunge protection team) than spending time searching for the culprits behind the Treasury flash crash, so we'll go ahead and point you in the right direction. First, look in the mirror, next refer to the graphic shown below.
Mystery solved. You are welcome.
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let's say it all together "LIQ-UI-DITY"
Steve Schwarzman: over-regulation could lead to a liquidity freeze & another financial crisisYou don't need market depth when you have good enough circuit breakers.
And to prove that point I'm now going to go stick a knife in my toaster. BRB
When you're done, throw the toaster into the bathtub with me. Plugged in of course.
I'm sick of watching this shit show...
Liquidity only exists when you don't need it and the Fed is trying to come up with another QE without having to admit that their QE and ZIRP policies are what ceated his shit show in the first place......
I knew it was time for something to break.
I cannot wait to see what happens when the markets finally discover that banks are sitting on nearly a trillion in bad home loans that are 90+ delinquent with the home never foreclosed on to keep the loss off the banks books. Short FannieFart Mae and FreddyFucked Mac Daddy. This shit is even worse than '08 and would have been resolved if it wasn't for the permanent suspension of FASB rule 157.
This just in from future news: "Treasury Secretary Icahn decides $1 trillion seems 'about right' for new bank bailout."
That's is so funny it hurts, cause it could happen.
Uh....I think most of that is now on the Fed balance sheet, after all, that's what a lot of the post-bailout period was for, giving banks et al time to unload all their toxic crap on to the Fed.
Why can't someone with the funds take that trillion in bad loans info and full page advertise it in the NYT or WSJ or somewhere? Or everywhere? Me naive?
There are homes that are 1000+ delinquent, some with loan recipient still in the home, some unoccupied, without foreclosure.
The FASB change allows the banks to carry those at full value, despite this. "Mark to Fantasy".
5 seconds? We are making a big deal over 5 seconds? Really? It was probably some IT intern ressetting the 5900
#copy running-config startup-config
#reload
Manipulation business is in high demand. What school do I get a degree in market manipualtion at?
I think that would be Harvard.
yeh, Yale doesn't cut it.
Princeton is a clown college.
just hold down cntrl alt M on your keyboard
5 seconds!? Wow!!!! So my trade was completed 7 secs after I hit "send".
In other news, Russian intervention in Syria seems to be anything but pushing the Assad
regime forward: http://news.yahoo.com/syria-rebels-seize-key-regime-town-hama-aleppo-095...
Based on information put out by the "Syrian Observatory for Human Rights" ! Yes, the guy in his Moms basement in London sticking pins in Barbie Dolls that bases his numbers on how often the Dolls yell when he sticks them. Sorry, but He's only a mainstream media expert. The "alternates" know his type. (before you read ANY article look for his name and you'll save yorself some time.)
I always look to yahoo to find the true international newz.
5 seconds is a lifetime when it is raining cluster bombs.
Pure bullshit - this whole thing is getting ready to SNAP!
Treasury boneheads are too damn stupid and lazy too go after all their goddamn bum-buddies in banking.
when zerohedge talks about October 15 2014 as "Treasury flash crash" it makes me believe that they are a part of the MSM.
it was not a flash crash. yields plunged, prices skyrocketed. while this morning yields did move up quite a bit, it was nothing compared to that day when they plunged.
people seem to forget that before QE, before HFT and algos dominated interest rate futures and treasury markets, before the NY FE started providing $100 billion in reverse repo treasury collateral to dealers daily (and pay them for it!) to rehypothecate to hedge fund friends who go massively short treasuries, that yields would go down 10 basis points, 20 basis points in the day when bad economic data came out! they stopped that!
Too many sharks trying to eat the same fish.
you show a chart of the 5 year futures market, which is not the treasury market. therefore, the claim that the "most liquid market in the world was halted" is incorrect - unless the cash market was halted. was it?
its 100% normal for the book to be empty before NFP ...
Why is liquidity drying up? I haven't been keeping up on this subject. Over-regulation?
Thanks.
The bullshit piles up so fast you need wings to stay above it.
Thanks Willard! "He was 38 years old, I ran the course at 18 and it damn near killed me"
Thanks Willard! "He was 38 years old, I ran the course at 18 and it damn near killed me"
For the life of me I just can not understand how the program can crash.
Its designed to place 1's or 0's in a particular space and the 1's and 0's are limitless.
Unless somebody trips over the cord.....
I'm shoveling coals out of my fireplace onto the fireproof carpet to see if they were telling the truth. (my wife is butchering a pig and checking the entrails, silly woman)