• Sprott Money
    03/26/2015 - 11:56
    Take the S&P Index and multiply by the US dollar index. This removes most of the currency variation. Do the same with silver. The chart of silver times the dollar looks very much like silver...

2s10s

Tyler Durden's picture

Updated UST 2s10s Chart





10 Years today rallied to the highest level since the QE announcement, at 3.015%. Additionally, the 2s10s curve is now 10 bps steeper than the pre Quantitative Easing announcement. Just in time for the Fed's QE v2.0 announcement tomorrow. What is another trillion in treasury purchases to US taxpayers? Someone has to pad Bill Gross' pocket. We should all be grateful for the privilege.

 
Tyler Durden's picture

Treasury 2s10s Curve Steeper Than Pre QE Announcement





Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.

 
Tyler Durden's picture

Treasury 2s10s Curve Steeper Than Pre QE Announcement





Things for the Treasury sure aren't looking pretty. With the 10 year about to break 3% outright, the 2s10s chart has just passed pre-Quantitative Easing levels. With Treasury supply really starting to ramp up, this could be a bad sign for agencies and mortgage rates. This happens as the TIPS auction is largely oversubscribed. Seems that the market is happy to jump over the next 2-3 years of deflation and is looking straight at 2013.

 
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