Treasury Yields Spike After 'Hot' CPI - 2Y Tops 2.00% For First Time Since Lehman

For the first time since Lehman (Sept 2008), 2-year Treasury yields topped 2.00% following a hotter-than-expected CPI print.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180112_cpi3.png

 

Additionally, 10Y Yields have spiked back to China-headline-highs...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180112_cpi2.png

Notably the yield curve is modestly flatter...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180112_cpi5.png

 

The Dollar is rallying on the data (but is very noisy), though still lower on the day after selling in Europe...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180112_cpi4.png

Comments

bshirley1968 Fri, 01/12/2018 - 09:06 Permalink

Well, well, well.  Looks like things are about to get interesting. 

Cost is they key.  With everyone working their asses off to make their debt payment, any additional rise in interest or fuel cost will be felt......acutely. 

dot.dot buttmusk Fri, 01/12/2018 - 10:02 Permalink

Can't say I have.

I cancelled my cable long ago, but when at the dentist cnbc will be on and they are chock-full of these inane catch phrases.  All in an attempt to sound cool I suppose.  "The two year UST has a 2 HANDLE"  -or- The latest PRINT

Reminds me a Jr High when being/acting 'cool' was so important.

 

Guess I'm gett'n old.

In reply to by buttmusk

LawsofPhysics Seasmoke Fri, 01/12/2018 - 09:18 Permalink

Not quite as some of those 350 million are actually producers of real products of real value, while the rest are consumers...

Guess what?  You cannot have more consumers than producers.  time for all those useless paper-pushing fucks to learn a tradable skill or be turned into fertilizer. In the absence of new innovation this may come to pass anyway.  It is just math and physics at work.

In reply to by Seasmoke

Boxed Merlot LawsofPhysics Fri, 01/12/2018 - 11:05 Permalink

...You cannot have more consumers than producers....

Actually, LoP, one probably could. Other factors work into the equation as you even note in your comment further down.

Past innovation has allowed for the ability to produce far more than the totality of what gets consumed. Think "wheel" if you must and the relatively constant ~2500 calories a day for human subsistence.

The issue is in the distribution of the goods produced and the desire of those producing to continue producing more than needed in the hopes of enjoying the prosperity their efforts generate, whether to "over" consume themselves and / or to have in order to give to one less "fortunate".

Hence, "Politics".

jmo.

In reply to by LawsofPhysics

LawsofPhysics Fri, 01/12/2018 - 09:14 Permalink

The savers have been bled dry and the bankers and financiers are going after the remaining few taxpayers and all The People's assets...

...National parks to be put up for sale to global oligarchs shortly etc.

Why have we and do we allow a select few individual people/corporations to create as much money as they want with no real work, no real risk, and no real collateral requirement?!?!?!

The world has seen the outcome of such "let the majority eat cake" monetary experiments and this time will be no different.

fattail Fri, 01/12/2018 - 09:15 Permalink

WTF would you buy expensive EU corporate bonds when you can get a 2 year UST at 2%.  I think we get a lot of flow back in to the bond market with these rates.  

Paul Morphy Fri, 01/12/2018 - 09:15 Permalink

10 yr yield up from 2.33 (December 2017) to 2.58 (January 2018)

30yr auction was a success yesterday.

10 yr yield dropped yesterday.

10 yr yield surges again today.

bshirley1968 Fri, 01/12/2018 - 09:55 Permalink

Gold up, oil up, yields up, credit at all time highs......yep, we are bubbling at the frothy top.  These are not just up.....they are in a "trend".  When does this become a trend that everyone sees?  Soon, I think.

Does the Chinese oil futures market have a play in all this?   Could this be the swing we have been waiting for?  At some point, someone us going to want to lock down some "gains" and the exits will get crowded quickly.  When this hot air balloon starts losing altitude this time, there will be no stopping it from the ultimate crash.

Winston Churchill whatisthat Fri, 01/12/2018 - 10:56 Permalink

I really don't know why we pay any attention.

Our "roaring" economy has barely slowed down its approach to the cliff and there's no braking room

left to the edge of the precipice below.

Too many, even here, are getting caught up in the BS and letting their guard down.

It will not end well for them.Life always seems great just before it smacks you in the face.

In reply to by whatisthat