Bond Yields Are Collapsing Around The World

Tyler Durden's picture

Kuroda's decision to go full NIRP-tard is benefitting investors worldwide... in bonds. JGB yields hit record lows, 5Y Bunds are trading below the -30bps ECB deposit rate, and US Treasury yields are collapsing across the curve with 10Y below August's Black Monday lows back to 9 months lows...

US Treasury yields are plunging... 10Y broke below Black Monday lows...

 

And 5Y rejected the top end of its range once again...

 

JGB yields hit record lows...

 

With German and Japanese bond yields negative to 8Y and 9Y respectively...

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ArkansasAngie's picture

If the world goes NIRP and we don't ... does that make us king of the mountain?

stocktivity's picture

Baltic Dry index down another 3 1/2% to 325.

_ConanTheLibertarian_'s picture

Negative BDI sounds ridiculous but maybe it's not...

USisCorrupt's picture

NOW would be the PERFECT time for China to devalue by 20-25% at ONCE !

That should put an end to the Derivative Bubble in the WEST !

Just DO IT China.

OrangeJews's picture
OrangeJews (not verified) USisCorrupt Jan 29, 2016 11:57 AM
Thenardier's picture

Did you see where JPM said that 1,430 vessels would need to be laid up to restore balance?! Wholly mackeral! Another crime of low interest rates, wonder whose holding those notes...at $2800/day to lease, cannot pay the interest..

gatorengineer's picture

Yep the shit king shitbeetle on top of the largest pile.....

Ghost of PartysOver's picture

The Gangs (Central Bankers) are starting to turn on each other with a little more ferocity.  When you race to the bottom eventually you hit a solid mass. 

ShorTed's picture

The race to the bottom of the global financialized sewer always leads to more shit.

Raoul_Luke's picture

That makes us the loser (this round) as we import their sluggish growth.

gatorengineer's picture

This is a main stream media fallicy.  The price of what we import gets cheaper, this supposedly pressures US competitors of their goods.  The falicy is that there are no US makers of anything left, so it doesnt impact us in the least as it goes to the bottom line margins of Walmart and Amazon (notice how prices havent dropped a dime on Japanese goods e.g. cameras although the Yen has dropped 50%)....

The US service industry is uneffected, and that is all we are a service economy, living on the last breaths of past glory.

Wild Theories's picture

on the bright side, you can expect a uptick in Walmart and Amazon earnings - if they don't pass on the currency savings on their imported goods

LawsofPhysics's picture

Yes, right up until no one will accept our dollars/FRNs...

Then all those useless overcompensated fucking paper-pushing criminals on Wall Street and D.C. will have to actually perform real work for a living again (of course they might start another world war to distract us from their fraud/theft).

The great thing about the information age is all these arrogant prick took pride in their crimes, just ask John Corzine or Hank "tanks in the streets" Paulson.

fine, we will take pride in putting the fucking heads on pikes...

 

Clockwork Orange's picture

The Crime Syndicate pushes the ponzi to the limit

 

 

NoDebt's picture

You haven't seen the limit yet.  When we get there, you'll know.

gatorengineer's picture

Theres a Spinal Tap it goes to 11 joke in there somewhere.......

Bangin7GramRocks's picture

That's right. And you can all discuss what happened by candle light as you cook a raccoon on the fire. I think society will disintegrate in 60-90 days after the fed finally loses control and the banks close. I'll print out some fancy multi-colored charts with my awesome predictions if anyone is interested. Fellas in the car club call me "The Chartist".

unplugged's picture

raccoon will be a delicacy - rat stew for the unwashed (literaly) masses

waterwitch's picture

When will 10 yr JGB go negative????  Prease sir, may have a roan?

gatorengineer's picture

guess this means my credit card rates will come down Sweet /s

One And Only's picture

I'm watching this and US politics thinking I'm in one of those dreams they warn about in the Chantix commercials.

 

new game's picture

refi's coming, get your pencil out and do some math.

long mortgage servicing fees...

5:1 arms for under 3, maybe seeing 2 1/2 by spring/summer.

like trump said in his interview, the cost of money is free, ha...

put it to work and game the fuckers, win/win for the loosing team ha...

ps, contrarian call, long r/e/ and rentals, lol at me, but seriously it plays and is real. beats everything else cept 9mm's by the shit load. stock up bitchez

E.F. Mutton's picture

I have a dream....

In 2021....

Me: "Hello, I'd like to pay off the remaining $80K of my mortgage"

BOA: "Certainly, sir, that will be $1,975,000 in New World Dollars"

Me: "I've got 3 Silver Eagles and some pocket lint.  All in mint condition"

BOA: "Done!"

Killtruck's picture

You overpaid! The pocket lint alone is probably worth $1mil NWD's.

yogibear's picture

All fiat currencies go to their intrinsic  value of 0.

new game's picture

so, therefore, IOU's are worth ?

sign me up!

unplugged's picture

pretty soon gold is going to pay a higher "yield" - hahahahahaha!!!!!

Pool Shark's picture

 

 

Nothing to laugh about at all.

When bank deposits pay 0%, the carrying costs of Gold also go to zero.

All the more reason to hold physical gold instead of digital 1's and 0's in an 'account' that is likely to be 'bailed-in' anyway...

 

Bangin7GramRocks's picture

Isn't this just perfect. Lower rates will prop up the housing market once again. It was just about ready to tip over and die. But like magic, 3% 30 year mortgages will hold it all together for awhile longer.

gatorengineer's picture

30 year on yahoo is 3.67% NY area and is tied to the Fed rate.  That 3.67 isnt going to move much it may go down to 3.25, until the fed goes negative.  People who could buy bought at 3%, to get housing fired up you need say a 2.5%  rate to get people re-fying.......

conraddobler's picture

Mortgages in Japan have hit the 1 handles it will be no different here. 

The meme everyone  keeps talking about is OH WHEN THOSE RATES GO UP!   

They won't they are playing the demographics this is what they learned to do in Japan, you just zombify the entire economy and control it all it's a black debt whole from which there is no escape.

Every business move is thus wired back into what the central bank does, perfection.  

Greenspan told you to get a adjustable rate, hasn't been a wrong move since he said that.

Tonesvette's picture

Seems to me this is the Holy Grail of a debt money system.  Free money.  Talk about maximizing the economy.  ANYTHING remotely profitable gets funded and debt service is a breeze.  Now if we can just keep the world at the barrel of a gun so they don't bail out of this system, we're fine.

conraddobler's picture

It doesn't matter what the rates are on government debt because that's the collusion part you give governments negative rates as the payoff for delivering the victims errr juicy morsels of yield to you.

The meme of an Octopus is wrong the FED is more like a gigantic spider society where they hunt in packs and the quivers they feel in the web are just tasty morsels of life force that creates real value when they feel that tingly feeling they swoop in, spin a cocoon web and suck it all out.

That's what they are doing.

Negative rates for the govies to look the other way as they feast on the citizens. 

Even one percent rates on mortgages can make you rich if you can borrow at zero, lever up enough times, you can make serious bank off of what you claim is near risk free that's not.

Yes it will all blow up at some future date and until then they will make bank.

It's our way of life.

 

Herdee's picture

Borrow at negative but if you expand where will you ship to and can you compete against Chinese Central Planning that has expanded so much that now they can't even recover their costs of production in just about any industry.Now you are seeing the start of trade barriers going up.Wait until Trump gets in,then the fireworks will start.

gm_general's picture

Wow a purple NIRP-le for the shorts.