Muppets Skewered: 10 Year Treasury At 1.999%

Tyler Durden's picture

10Y Treasuries just broke below 2% yields for the first time in a month. Was it just 3 weeks ago that Goldman suggested selling bonds and buying stocks?

10Y < 2% once again...

Almost 40bps lower in yield since Goldman's prescient Muppet-mauling short suggestion...


meanwhile 2Y Bund yields just crossed under 2Y JGBs for the first time ever...

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prains's picture

Kermit on a stick.....mmmmm,m

whatsinaname's picture

wonder which way Bill Gross is placed this time ? I have seen many negative articles about his fund lately.


One man's junk is another man's junk.  

Colombian Gringo's picture

Just do what the Goldman Prop traders do, fade recommendations made to clients.

Comay Mierda's picture

why does everyone hate gubbermint nutsacks? they are the BEST contrarian indicator in history. I've made decent profits doing the exact opposite of what they recommend.  I cant wait til they issue a short gold recommendation

Richard Chesler's picture

Goldsack kleptoparasites must feed.


MillionDollarBonus_'s picture

US treasuries are still MASSIVELY undervalued at these yields. What other instrument gives you a RISK-FREE 2% return!? Not only that but UST's are an unequalled hedge against potential economic turmoil.

SMG's picture

If RISK-FREE means losing everying you've invested in a massive default/hyperinflation.  Then yes it is RISK-FREE.

MillionDollarBonus_'s picture

Default?? LOL. You STILL don't get it do you? The United States of America issues its OWN CURRENCY. This means our federal reserve can fill ANY GAP in foreign demand. And so much for "hyperinflation" - the 10 year just had another successful test of 2.4% (where I was an aggressive buyer), before plunging to more reasonable levels. It’s sad that doomer goldbugs continue to be totally ignorant of the fundamentals while savvy value investors are picking up bargains.

Doubleguns's picture

MDB, You should be buying bridges right now I hear they are going cheap. California is selling the golden gate bridge to meet budget deadlines. Heres your chance to really make some money. Brooklin bridge might go up next. Get in now!!!!

TWSceptic's picture

If ignorance could be made into a person, you would be that person.

ATM's picture

Are you suggesting that T-rates are an indicator of inflation?

The FED can make T-Rates anything they want because they name the price! Are you freaking kidding me? The dollar can be destroyed at a 0% treasury rate and inflation will be raging everywhere!

BTW, I too was an agggressive buyer of treasuries in the 2.3-2.4 range precisely because I know the Fed cannot allow the rate to inch higher because at every 1/10th it goes up housig takes it in the ass and it is still all about housing here in the USA. Everything the Bernenk does is to try to reinflate housing but he cannot. 

The deflated housing bubble has caused him to continue to create the Treasury bubble. He has no other avenue other than to hold down T rates because housing implodes if he doesn't and US governent debt service numbers explode and we hit a debt limit much earlier than the election, which he can't have.  

MeelionDollerBogus's picture

Like Zeno's paradox there's no filling of the gap - printing currency to pay a debt always falls short of the initial principle (then there's interest expected too) so that the debt is by definition defaulted on.

LongSoupLine's picture




Ahhhh yes...MDB.  Anyone who says something is "risk free"  is either a troll, idiot, or part of the systemic problem.

Hmmm, come to think of it, they can be all three.

Vampyroteuthis infernalis's picture

MDB, when is Tyler and crowd going to kick you off ZH? The trolling lately has not even been that good.

Vampyroteuthis infernalis's picture

The squid already owns MSM. There is nothing "fair" about that. By the way, fuck Murdoch.

Nobody For President's picture

For all we know, MDB *IS* Tyler...

Anything to keep the troops riled up, and MDB is usually really good, although sometimes he (or she) overdoes it a touch.


Anyway, MDB needs to stay around for comedy relief, mostly to see how many new ZHers bite.

swmnguy's picture

I get a similar return just setting my FRN's on fire.  In the same sense that my odds of winning the MegaMillions are nearly the same whether I buy a ticket or not.

MeelionDollerBogus's picture

it's all risk & no gain - real inflation is over 7% so a return of no more than 2% is 100% risk - you are assured of a loss of money and you are also assured a loss when treasuries default.

The USA is the CAUSE of the economic turmoil so investing in treasuries only makes more.

Rick Santelli on King World News

spiral_eyes's picture

The thing is, Goldman Sachs predicts both things at once.

Muppets can't trade both sides at once and muppets don't get bailouts.

Carl Spackler's picture

The analyst staff has really morphed into Goldman's propaganda arm under Blankfein, and they flood the world with plenty of empty propaganda ala Barack Obama and his in-house and media minions.

The goal remains the same between both bands of highwaymen...dupe the muppets...then take their money/vote/power.

ZH, on the other hand, is sounding the message of buyer beware.

francis_sawyer's picture

So is Kermit getting skewered?... Or is he just in the pot with the water slowly being brought to boil? I keep losing track...

Bluntly Put's picture

Kermit has what is known in the vernacular as "Stockholm Syndrome". It's the same mental disorder that leads Beaker to be the hapless victim of Dr. Bunson Honeydew's mad experiments.

killallthefiat's picture

I am really starting to feel bad for anyone listening to GS.  Too bad, it is a lot of state pension funds with Muppets at the head that think that GS is the ultimate in investing advice.  Again, more taxpayer money for GS :o(

This is a strong argument to defund gubmint at all levels.

tallen's picture

Goldman, how much longer will people follow your stupid pumps and dumps. Your worse than the spam i get telling me to buy micro penny stocks.

CrashisOptimistic's picture

Why should the 10 year bond yield go up?  Here's why it should not.

1) There's no organic (non govt stimulus) growth.  None.  Less than none.  That means no private demand for loans to drive the price of those loans up.

2) This is global.  Money is terrified and it looks for the only place large enough to hide in.  US Ts are so liquid that they can absorb that influx of scared money.  Nothing else is big enough to do that.

3) The Fed backstops this parameter.

4) This is the new normal.  This is a world where governments do anything to keep the wheels turning.  If you fancy yourself a bond vigilante, you will be jailed.

5) If this yield goes up, the world ends.  Period.  17 Trillion of debt can't endure a ramp in yield, and therefore there will not be one.  If you try to create one, see item 4.

Jacque Itch's picture


I have been making this point for 3 years.  Don't fight these turds.  The Fed bought up 61% of treasuries in 2011.  They will buy 100% if they have to... until they can't.  But don't bet on "when".  Just stay out of their way for now.

donsluck's picture

For the last 15 years, my most successful investing has been simply getting out of the way.

Nobody For President's picture

You don't get it - The squid is wonderful. Just fade the advise, make big bucks!

When GS said go long Russell 2000 at 820 or so, because it is going to 870, I laid in a batch of TZA. GS just took off that long Thursday, a little late.

RUT is 787 and falling as I type, and I'm a very happy camper. GS is a great contrarian indicator - please don't knock 'em.

monopoly's picture

GS should be on the pink sheets. Piece of shit.

Check out BBY. First after Dunn resigned stock up, now 2 bucks off the high. I think they figured it out. Box stores, except for food that we need no matter how deep the depression goes, are toast.

GeneMarchbanks's picture

'Was it just 3 weeks ago that Goldman suggested selling bonds and buying stocks?'

Retail wisin' up. Muppets no more?

Caggge's picture

Goldman....a pimp salesman that gets paid by commission recommending every trade that can be made because they don't get paid on the quality of their advice...they get paid to broker the advice. They recommend the worst investments to their muppets then short the investments.

vegas's picture

Maybe it's just me, but with Uncle Sam only a few years [or sooner] before outright default, exactly who besides the Fed would lend Chalky Soetero money at 1.999%? I don't see how anyone can expect a return at maturity.

Koffieshop's picture

You answered your own question.
The Fed will be buying all treasuries at some point. There will be no default, there will be inflation instead.

Ted Baker's picture



SheepDog-One's picture

That cant be, everyone on Wall St media says S&P 1,400 is 'correct', and should really be MORE 'correct' and far higher. So how is -10% a correction? Simply cant be.

Carl Spackler's picture

Hypothetically speaking, for the market to correct (sell off) 10% over the next two weeks, it would need a real big catalyst.

So, WHAT, do tell, is that real big catalyst ?

Earnings season could be a catalyst, but not to the tune of 10% sell off.


Nobody For President's picture

Spanish and Italian bond yields, maybe.

FTSEMIG.MI (Milan) down 4.98 today. IBEX down 2.96. Trading halted in big Italy banks.

Don't look, but things are going to haitch e double toothpicks across the pond.

Matador's picture

Goldman nailing it again:


BFW 6:45 Sell Randgold, Mali Political Risk Has Increased, Goldman Says

BN 10:24 Randgold Climbs as Mali Junta Agrees to Transition: London Mover

SheepDog-One's picture

If Goldman told its Muppets to sell bonds and buy stocks, then Goldman was selling stocks and buying bonds. The only question is, who are these lunatic 'clients' that actually continue to listen to these pirates at GS?

WhOracle's picture

clients that are ready to take a small loss from GS trade ideas just to get connections and access to hot deals, friends with benefits.

dcb's picture

I do hear they do give their clients the best hookers, but since that madam has been busted things have slowed down.

Rainman's picture

The same lunatic clients who listen to Larry Fink, I suspect.

chipshot's picture


who listens to the squid?..... your congressmen ,senators and presidents....screwed indeed.

dwdollar's picture

It feels like Ben Shalom is playing his shenanigans right now.

SheepDog-One's picture

Maybe he's just sitting in the corner playing with himself?

Mr Lennon Hendrix's picture

Playing his saxophone whilel America burns.

Mr Lennon Hendrix's picture

Soon a Doom and Gloomer like Bernanke or Geithner will tell us the world is going to end soon if we don't bail out these Banking Houses that never get a trade right.