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The US Dollar (and Treasury Yields) Is Melting Up
Despite already record levels of "long USD", from Cable to EUR, traders are dumping everything and buying USDollars, sending the USD Index surging off overnight lows. At the same time, Treasuries are being dumped en masse with the bellyu of the curve up 15-17bps since Friday.
The USD is going vertical...
And bonds are being dumped...
But the problem for stocks is that USDJPY seems to have lost control...
Charts: Bloomberg
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Yes!
Heading out NOW to sell my Gold!
The u.s. Dollar is the KING OF THE WORLD!!!
(Bitches)
bye bye dollars. get some free bitcoin ever hour at http://freebitco.in/?r=25727
About A week ago I was scoffed at for saying the dollar had not yet it's demise at the hands of the MIGHTY YooAWN......
The USD will rise and rise and then do a vanishing act.
The fools buying F.A.N.G., the wise buying Gold and Silver.
The road goes on forever and the party never ends....... https://www.youtube.com/watch?v=eN3BlPIwg2U
The wise almost NEVER invest in a one-trick pony. Unless they control the key variables that lead to a certain and profitable outcome.
The foolish... well, they act like they're investing, when in fact they are gambling. If you're going to gamble, you should at least stick to the basic rules of gambling.
Parabolic phase. 120 (initial) target.
"Wise" people been getting raped since 2011, will continue to get raped.
No worries, treasury yields will be headed back down once the dead cat bounce is over.
Seems that a good downward spike in the stock market is needed to boost the bond market, but what lousy timing for the Fed's conundrum.
They have really put themselves in a corner; damned if they do and damned if they don't...but everything is awesome.
You hit it with that comment. Damned if they do, damned if they don't.
The Fed is irrelevant and has lost all credibility. Nothing it does or says tomorrow will change any of that. Except, to make it even obvious to those who are not captains of being obvious.
Correct. The velocity of the FRN is telling the tale. International trade is the only thing that really keeps the world from killing each other in earnest. So the question is, what currency do all the global trade partners want to use in this 100% fiat world...
Regardless of the Fed, global Weimar is now inevitable.
Raise rates tomorrow, with the caveat that they expect to lower rates at the next meeting. Or something like that. Basically, they will be able to raise while getting people to begin pricing in a lowering of the rate.
Then rinse and repeat at higher and higher rates.
Of course this won't work, but they will try some scheme to stay relevant.
US a safe haven from EU NIRPsters. but dumping bonds? seom anticipation that energy will find a bottom here when junk collapses. its like investors woke up this AM and said hey the Fed is really going to raise rates. its stock market meltup mode sell everything to buy janets wallpaper.
NYFED be like Wingardium Leviosa on Equities and DXY. Voldemort speaking in parseltongue to his minions tonight.
Sometimes I wish I could down vote more than once
transitory
Yes, now remind us, exactly how is this going to work out for the global trade of real goods and services...?
I only ask, because the only thing history demonstrates with any clarity is that when goods and services stop crossing boarders, troops will...
The Russian ruble will be the next world's reserve currency. According to ZH dummies.
Oh good, can't wait for foriegn goods to be cheaper. That's the theory behind need to devalue the dollar isn't it?
HOLY COW!!!!
So... Looks like fixed income people looking for greater security than the T-Bill can offer.
The problem with this is that it is totally nuts.
Dollars are TBills, TBills are Dollars. Get it?
Specifically, Dollars are checks, and TBills are the checking account balance against which they are written.
Particularly, the Fed receives newly written TBills, and enter them into their "Assets" ledger. The Fed next creates an issuance of Dollars equal to the face value of the TBills in their Liability Ledger.
Dollars' and TBills' values in terms of "real stuff" are tied together because they are the two sides of a single transaction.
Furthermore, we are in eternal fiscal deficit because we are in eternal monetary deficit. They don't create the Dollars to pay the interest on the TBills when they do the face value.
No. Later, they create a SEPARATE TBill, with it's own face value and interest rate, on which to base the creation of SEPARATE NEW DOLLARS that allow the interest to be paid.
THIS IS WHY DEBT MUST ALWAYS INCREASE...BECAUSE THE CURRENCY IS BASED ON DEBTS, WHICH REPRESENT UNCERTAIN ECONOMIC VALUE TRANSPORTED FROM THE FUTURE TO THE PRESENT, AND THEN DEMAND AN INTEREST RATE EX-NIHILO. The only place for the 'ex-nihilo' to come from is from the wealth of current holders of the currency in the form of deficits to enable wealth redistribution.
So...
When the market writes down the value of the asset upon which a liability draws its value then the liabilities' value does what????
Stated another way, what happens to the value of a check written as a percentage of the checking account, 'pay to the bearer 1/1000th of John's Checking account', IF THE VALUE OF THE CHECKING ACCOUNT IS DROPPING??????