Five-Year Treasuries 'Special' As Safety Demand (or European Risk Aversion) Causes Collateral Shortage

Tyler Durden's picture

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GeneMarchbanks's picture

Reggie Middleton was right. The first to fail will see capital flight to the other contenders. No longer is this nations failing but continents. Chimerica lives to see another day.

trav7777's picture

what I take from this is a couple and most importantly, there is no yield anywhere anymore around here.

The second is that the Fed/banks are trying to chase the excess reserves out of reserves and into something else and the goal seems to be to fund the USG deficit with that.  This might mean BB can get away with no QE for a lot longer than expected because there were about a year's deficit worth of dollars parked in excess reserves.

slewie the pi-rat's picture

of course


i've been trying to tell people this since tyler went ape-shit abt (LSAP?) QEIII in early august

there are so many "fantasies" regarding "what must happen next" from the mythology types like ori, the uber 'myth-othodox' falak penis, and those whom god had addressed, direcly and given "visionary truth" like "spirit of truth" and all their little bands of "friends" here as to make serious, rational discourse almost impossible

those of us who know the need for anonymity in these troubled times will note that none of  these asshats are anon-i-mouse and seem to have "businesses" which consist of scaring people who can't think straight and then "foretelling the future" for them

thanks for not binging "peak oil" into this, trav, and the rest of this isn't addressed to you, personally:

there is also the idea being www'd that the chairsatan has "gone enron" w/ stealth, off-balance sheet printing...

also: this "deflation" may be "just the ticket" for merkel's political purposes in "saving the EU by sacrificing germany"...

...the swiss SNB's "devaluation" act is one of the biggest central Banksters' co-ordinated attacks on wealth and autonomous political control in history

the idea that nations and their peoples MUST re-capitalize the financial institutions which are oppressing them politically and economically and throwing all civil discourse into bankster-advantaging confusion, didn't work in the USA, and should be challenged by clear-thinking citizens everywhere

LET THEM FAIL!!!   tell ms. lastrage lagarde to go sit on it!  if they failed, they fuking failed.  they gambled and lost.  shit happens!  stop giving them more of your money & wealth to fuking gamble with!

if the regulatory jackasses who let them become "too big"  just keep making them bigger, WAKE THE FUK UP AN LET THE CHIPS FALL BEFORE YOU LOSE ALL YOUR WEALTH AND ALL YOUR POLITICAL RIGHTS TO THE NWO

stop buying into their non-stop lies;  the answer is simple:  STOP!  let them fail and fall.  banks, nations, corporations, all the fascist power centers are NOT Real economically and are based on lies, fear, and misplaced "trust"

trust me!   L0L!!!

Caveman93's picture

"Special Needs"....all I have to say on that one.

papaswamp's picture

This could put the fed in a serious pickel....

Caveman93's picture

I love Pickles!  Quick Banzai! Sweet Pickles Van with Ben driving it!

DCFusor's picture

Actually, it seems like the fed will have no trouble selling shorter term T's high so it can do op twist.  That's a nice tasting pickle indeed (for them).  Just as pulling the plug on PPT caused a stock crash and a rush to bonds to help keep govt interest down -- maybe they aren't so dumb (short term that is).

gorillaonyourback's picture

so it costs money to hold money,

wish i had 15 billion id gladly loose a little to insurance and generalm operating expenses

Caveman93's picture

It's normal SOP's...we call them ..."Bank Fees". 

trav7777's picture

banks used to use repos to generate yield off that cash.  They apparently cannot anymore as everything is dragged to ZIRP.

the ONLY things reliably paying any yield now are USTs.

Sophist Economicus's picture

Hence B's move to the long-end of the curve, the short end will take care of itself, for the time being....

beaker's picture

RE US/Z1 - did we just have an exhaustion gap, outside reversal, gap down TOP????