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'Twist' Sends Ultra Investors Shouting With 30Y Treasury Yield Back To Jan 2009 Lows

Tyler Durden's picture




 

This week alone, longer-dated Treasury yields have dropped 15bps, as 30Y Treasury yields reach 2011 lows and all the way back to January 2009 levels. One can only hope that Bernanke doesn't disappoint...

It is also perhaps worth noting that the spread between 30Y MTG rates and 10Y TSY at 120bps is its highest since April 2009 - so those expecting mortgage rates to plummet and a wave of refi/new purchases may just be disappointed.

Chart: Bloomberg

 

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Wed, 09/21/2011 - 12:27 | 1692815 duo
duo's picture

The Bernank is going to be disappointed when 3.5% mortages do nothing for home sales or prices.

 

Wed, 09/21/2011 - 12:27 | 1692817 Larry Darrell
Larry Darrell's picture

Bernake comes to the mic today, looks at the rates.  Sees they are where he would like them, thinks to himself, "Mission Accomplished," proceeds to jaw-jack about coming in if necessary.

"Market" participants, being completely brain dead lemmings continue chasing the carrot on the stick.

All attention returns to EUR for another month.

Boring afternoon.

Wed, 09/21/2011 - 12:27 | 1692818 RobotTrader
RobotTrader's picture

 

 

Not only that, there is a panic bid in municipal bonds today.

MUB now at 52-week highs, California muni's especially strong, check out CMF.

Wed, 09/21/2011 - 12:36 | 1692880 Robot Traders Mom
Robot Traders Mom's picture

Really dude? You base your logic on municipals on a 52 week chart of an ETF? I know that usually you just troll, but I'm fairly sure you are trying to be serious on this one. Why do you even bother posting? You know everybody here thinks you are a joke, right?

You live in your parents basement in LA. Your life sucks. Go away.

Wed, 09/21/2011 - 13:02 | 1693039 LongSoupLine
LongSoupLine's picture

Wow...awfully hard on your bastard son aren't you?

Wed, 09/21/2011 - 12:37 | 1692886 duo
duo's picture

That's because Bawney Fwank was talking them up this morning on CNBC

Wed, 09/21/2011 - 12:45 | 1692943 jdelano
jdelano's picture

sub 2% GDP = epic muni fail.

 

Good luck with dat.  

Wed, 09/21/2011 - 12:50 | 1692972 scatterbrains
scatterbrains's picture

How would passage of a Cali State bank effect it's muni's ?

Wed, 09/21/2011 - 12:59 | 1693023 LookingWithAmazement
LookingWithAmazement's picture

Finally, Armageddon.

Wed, 09/21/2011 - 12:27 | 1692819 props2009
props2009's picture

But the difference is tha the 30 Y is still not at all time lows like the 10Y. This raises the question whether the FED actually has any control over 30y at all?

 

http://capital3x.com/?p=1659

Wed, 09/21/2011 - 12:31 | 1692849 4shzl
4shzl's picture

Sell the news . . . or not.

Wed, 09/21/2011 - 12:27 | 1692821 Irish66
Irish66's picture

BAC downgrade

Wed, 09/21/2011 - 12:32 | 1692839 drivenZ
Wed, 09/21/2011 - 12:30 | 1692840 LongSoupLine
LongSoupLine's picture

drive the blade into JPM!

Wed, 09/21/2011 - 12:30 | 1692841 Robslob
Robslob's picture

RISK!

It's not just a game...it's a fuckig adventure

Live it...learn it...love it...leave it...

Wed, 09/21/2011 - 12:31 | 1692850 BrocilyBeef
BrocilyBeef's picture

Operation Twist? I get the jist.

Operation Twist TWO... Yahoo!

Operation Tator? Maybe later.

Operation Tator Tot. Probably not.

Stupid Fed.

Wed, 09/21/2011 - 13:03 | 1693045 flattrader
flattrader's picture

What did Mr. PotatoHead say to the stick-up man?

.

.

.

.

 

"Don't shoot! I have a wife and tator tots."

Wed, 09/21/2011 - 13:09 | 1693091 BrocilyBeef
BrocilyBeef's picture

you just made the quote book, ft.

Wed, 09/21/2011 - 13:17 | 1693139 flattrader
flattrader's picture

I live in a part of the country where kids still tell jokes in exchange for candy on Halloween.  I give double candy for really good ones.

That was last year's winner.

Wed, 09/21/2011 - 13:25 | 1693215 BrocilyBeef
BrocilyBeef's picture

double candy!

Can't wait for this year's winner!

Wed, 09/21/2011 - 14:11 | 1693463 LFMayor
LFMayor's picture

I'll have to send my kids out with this one then.
Q:What's got 72 balls and fucks old ladies?

A:Bingo

Wed, 09/21/2011 - 12:33 | 1692859 Cult_of_Reason
Cult_of_Reason's picture

Large SPY blocks dump hit the market at 12:25

What is going on?

No QE3 news leak?

Wed, 09/21/2011 - 12:33 | 1692864 Dr. Engali
Dr. Engali's picture

The fed continues to analyze the data and stands ready for further accommodation. It sure would be funny to see the whole thing blow up.

Wed, 09/21/2011 - 12:35 | 1692868 scatterbrains
scatterbrains's picture

If the act of stapling the long end to the floor doesn't mark the top in real estate then nothing does.  If we step back and look 10 years out how can this help RE ? I'm thinking massive long term C wave (not that I'm big on Elliott) in commercial real estate as sooner or later all of this must unwind.

 

 

Wed, 09/21/2011 - 12:46 | 1692928 Die Weiße Rose
Die Weiße Rose's picture

I am not going to spend any money on this crap market that needs to come down at least another 50% to reflect fair value !

Once this house of cards has collapsed down to march 2009 lows, SP 666, I might perhaps think about it -

wr;)

Wed, 09/21/2011 - 12:48 | 1692962 BrocilyBeef
BrocilyBeef's picture

First, go hard physical assets, ie. "phyzzz."

Sprinkle left overs on stocks, bonds and premium roasted whole coffee beans.

Wed, 09/21/2011 - 13:01 | 1693038 covert
covert's picture

only suckers believe in govt.

http://covert3.wordpress.com

 

Wed, 09/21/2011 - 13:15 | 1693117 IQ 145
IQ 145's picture

Sold the Long Bond on the CME at 7;11am hst; basis Dec. Short. filled at 142;00

Wed, 09/21/2011 - 13:23 | 1693197 Panafrican Funk...
Panafrican Funktron Robot's picture

That should end up being a pretty big winner, the 30 is flat out retarded right now.  

Wed, 09/21/2011 - 13:32 | 1693256 BrocilyBeef
BrocilyBeef's picture

better than me, sold at ~136.

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