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Treasury Curve Collapses To Flattest In 8 Years
This was not supposed to happen. The spread between the 2Y Treasury yield (which is soaring 7bps today) and 10Y (higher by 3bps) has plunged back below 120bps. The current cliff-edge has been support for the curve four times in the last 8 years but with GC rates blowing out to decade highs, one wonders if the size of the moves means we break to new regime lows.
2Y blew higher in yield (and rest of curve catching up now)...
Which sent 2s10s to 8 year flats...
2Y notes are trading -2.5% (extremely special) in repo and furthermore, Stone & McCarthy noted, the overnight general collateral rate is at 0.55% this morning, up from yesterday and the highest that it has been in over 7 years. The GC rate has exceeded 30 basis points since the fed rate hike.
Highest "since Lehman"
Charts: bloomberg
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We Flattened some folks
Just now on Drudge.....Jerry Lewis just flattened Obama.
Yeah he's still alive....who knew?
Third-string Tyler on slow news day posts a mislabeled chart and ascribes much significance to it -- LOL.
For decades, the interval between Xmas and New Year's has been and apparently continues to be a favorite light volume, stop-running playground for da' boyz, da' algos, et. al. Get over it.
P.S. The coupon curve is steepening, not flattening at this juncture. Knock, knock, ZH -- anyone home?
Everything is contained
(Laughing)
Flat bottomed girls make the rockin world go round...
How you doing with that bond market manipulation yellen? Not working? What a fucking shame.
that's okay the big banks can issue more energy complex junk bonds and sell them off to g'ma's hedge fund to make up for the loss of revenue. oh wait a minute, no they can't. heh heh. nothing a little rubber stamping by moody's can't fix.
so the azzhats who said to load up on banks after the rate hike have all been fired? not yet?
Which are smarter the traders or the Fed ? Inquiring minds want to know.
Flight to safety, "since Lehman".
AIG or Citi deserve it this time.
quadruple bottom breakdown... is that a thing?
This is the real rate hike on the O/N. It's finally above the IOER. Finally makes sense for someone to loan out reserves.
hard to tell truth from reality when the NY FED has $270 billion in daily reverse repos with foreign central banks and are allowed to trade in futures market (apparently). that's the stuff we know for a fact - imagine what shenanigans they do that we don't know about to keept he turd stock market were they want and the yield curve this steep.
"hard to tell truth from reality when the NY FED has $270 billion in daily reverse repos with foreign central banks and are allowed to trade in futures market (apparently). that's the stuff we know for a fact - imagine what shenanigans they do that we don't know about to keept he turd stock market were they want and the yield curve this steep. "
Rabbit hole this way---->
http://www.marketskeptics.com/2010/05/federal-reserve-has-been-abusing.html
Janet needs to get to the office very very early Monday, January 4th.
She has a load of manipulating to do.