This page has been archived and commenting is disabled.

Bloodbath In Bonds - Yields Jump Most In 7 Months

Tyler Durden's picture




 

The entire Treasury curve is getting battered with 30Y +13bps, back above 3.00%. The belly is the most dramatic with 7Y yields up over 11bps - the biggest single-day surge in 7 months. 5Y yields are up over 9bps pushing back to the "wall" of resistance...

As Bunds get demolished...

 

10Y Bunds are up 20bps!!! the biggest percentage rise since Gross and Gundlach went to town...

 

So USTreasuries are following on the arb...

 

5Y yields are once again at the wall of resistance...

 

Charts: Bloomberg

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 12/03/2015 - 12:25 | 6870994 KnuckleDragger-X
KnuckleDragger-X's picture

Groovy etc. Things are wonderful as idiots from other countries buy up our magic paper. P.T. Barnum was absolutely right about suckers and even breaks.....

Thu, 12/03/2015 - 12:25 | 6870996 lehmen_sisters
lehmen_sisters's picture

Selling bonds and buying AR's before they go back up to 1000$ a piece.

Thu, 12/03/2015 - 12:28 | 6871015 1stepcloser
1stepcloser's picture

The Fed dumping bonds yet....yeah didn't think so

Thu, 12/03/2015 - 12:31 | 6871023 firstdivision
firstdivision's picture

Time to short the EUR next Firday.  Same as last time they cut, massive spike, to not slow decline. Race to the bottom is accelerating.

Thu, 12/03/2015 - 12:30 | 6871032 back to basics
back to basics's picture

Price stability bitchez 

 

//s

Thu, 12/03/2015 - 12:31 | 6871035 Bryan
Bryan's picture

Because.... the market is pricing in a Yellen interest rate hike that's not going to happen?

Thu, 12/03/2015 - 12:36 | 6871071 The best Sun
The best Sun's picture

Unless it's time to screw this pooch.

Thu, 12/03/2015 - 12:50 | 6871142 Bryan
Bryan's picture

Yellen FTW.

Thu, 12/03/2015 - 12:35 | 6871063 the grateful un...
the grateful unemployed's picture

the bond market is essentially flat line, so on fed speak days this is routine volatility. i dont consider 12 bps much at the long end when the rate hike is 25, and considered of no real consequence anyway. this just confirms that. what they want to know is will the fed stick to incremental rate hikes or would they freestyle, flip back and forth, between QE and baby steps. thats the real dilemmafor both the fed and the people who have their portfolio flashlight up the fed's ass. the fed cant grow the economy, let them admit that anyway and let the money managers do their own due diligence. these guys are going to cry real tears this christmas if the centrally planned economy doesnt pay their bonus. sheesh

Thu, 12/03/2015 - 12:37 | 6871078 Bill of Rights
Bill of Rights's picture

Good to see everyone is fully distracted ( The plan is working )

Thu, 12/03/2015 - 12:50 | 6871140 McCormick No. 9
McCormick No. 9's picture

This is what's really happenning. Bond contagion. False flag mass shootings are the new Kardashians, ie, distraction. In fact, I'd like to start a slang term, in which all mass flalse-flag shootings are called "kardashians". So, when you talk about tomorrow's live shooter drill-turned active shooter event (what are the chances?), you can say something like, "Wow, did you see the you-tube of that massive kardashian that happenned this morning?" Or , if referring to an older false-flag mass shootings or bombings, such as paris, hebdo, or sandy hook, boston, etc, etc, you can say something like, "yeah, that Boston kardashian was totally using crisis actors!"

But back to bonds. Climate change intervention will totally fuck the economy. Think of one thing that is made without a fire. That's right, you can't. Everything that is made, is made with fire. Fire= carbon. Cut back on carbon, you cut back on fire, and if you cut back on fire, you cut back on production, and if you cut back on production, you FUCK THE ECONOMY. The greater chances that bonds will default, the more bond yield contagion wil break out. You don't have to have a Fed-hike to get higher interest rates. This will happen by itself, and the Fed will try in vain to keep rates down (although they may crack the dam with an initial hike, only to double down on NIRP immediately after, in VAIN).

We are so fucked. Kardashian events (see, I am using the slang already!) have the goal of taking our guns so that when the economy is intentionally destroyed with climate change rules, (bond yield contagion) and we all have to line up for our ration of soilent green, we won't have any weapons to fight back with.

Thu, 12/03/2015 - 12:37 | 6871080 riot-police
riot-police's picture

Hard to make sense of any of this madness. Actually not even trying. Just watching from a loooong distance away.

Thu, 12/03/2015 - 12:45 | 6871109 katchum
katchum's picture

Ah, the limits of negative interest rates... The beauty of sanity.

Thu, 12/03/2015 - 12:47 | 6871121 madbraz
madbraz's picture

sure, our long yields don't go down with their QE but they go up tick by tick with theirs when they go up on not more QE.

 

whatever suits the players in the futures market, that's the answer.

Thu, 12/03/2015 - 12:54 | 6871166 TheBeatles
TheBeatles's picture

All 1oz Silver coins are €12 @ EurGold

 

https://www.eurgold.eu/silver/silver-coins/

Thu, 12/03/2015 - 12:55 | 6871168 Yen Cross
Yen Cross's picture

    The stage is set for Mr. Yellen now... Draghi took the $usdx down almost 2%, and the eur/usd up over 3 handles, along with bond prices crashing.

   Now if she lifts rates that should contain the $usd rise somewhat, and as the equity markets crash, bond yields will be somewhat contained. Then she can watch the shitshow until all the banksters and politicians come crying to her in an election year, for MOAR QE.

Thu, 12/03/2015 - 13:19 | 6871290 chunga
chunga's picture

This was pretty interesting from zh'er johngaltfla yesterday Yen.

While One Hand Distracts with California Terrorism, S&P Downgrades Every Major US Financial Institution

http://johngaltfla.com/wordpress/2015/12/02/while-one-hand-distracts-wit...

This means that the Fed has given the warning to themselves as after all these are the shareholding institutions which make up the Federal Reserve and that soon they are going to finish the harvest of the suckers by rapidly increasing interest rates and eventually creating a crisis far worse than 2008-2009 which will require an entire reset of the United States financial system.

Thu, 12/03/2015 - 13:43 | 6871429 LawsofPhysics
LawsofPhysics's picture

Yes, then the bail-ins will begin.  If you have money in a bank, go to physical cash.

History rythmes.

Thu, 12/03/2015 - 13:59 | 6871538 chunga
chunga's picture

Do you think those banks really got down-graded 'cuz you think we'd be hearing about that elsewhere no?

Thu, 12/03/2015 - 13:45 | 6871448 LawsofPhysics
LawsofPhysics's picture

No. The Fed has set the stage for bail-ins.  They will hang their political puppets out to dry.  If you are in a major city, get right with your "god" and get your tribe in order.  America is about to be "Cyprused".

Thu, 12/03/2015 - 13:03 | 6871200 PoasterToaster
PoasterToaster's picture

Pricing it in baby.  That's the Fed head fake at work, or so they hope.  Then later when they do raise rates, the market won't break.

Do algos have emotions?

Thu, 12/03/2015 - 13:41 | 6871423 LawsofPhysics
LawsofPhysics's picture

Shaking out weak hands before the big head fake.  Raise rates a trivial amount before going NIRP in real terms.

Thu, 12/03/2015 - 15:55 | 6872300 Vin
Vin's picture

Anybody know why the dollar took a dump today?

Thu, 12/03/2015 - 17:01 | 6872631 Mentaliusanything
Mentaliusanything's picture

QE eventually goes through the "Bowels" of the economy, like eating a Burrito that has salmonella.

You need a dump to clear the system of the bad effects (bloating, gas, and irritation) and this is just tummy rumbles

Do NOT follow this link or you will be banned from the site!