Treasury Yields Are Tanking

While stocks are bid off earlier lows, US Treasury bond yields are plunging this morning, extending the week's collapse and perhaps signaling the record short speculative positioning is starting to unwind...

Who will be right?

10Y Yields are way below the 3.00% Maginot Line...

And 30Y Yields are at 6-week lows...

 

Is the big bond bear positioning about to unwind en masse?

 

 

Comments

lester1 Fri, 05/25/2018 - 10:44 Permalink

Looks like the unaudited Federal Reserve is creating money out of thin air and doing currency swaps again. That's why so many foreign banks are buying US Treasuries. Its one big giant circle jerk! The most manipulated/fraudulent financial markets we have ever seen!

Dilluminati LawsofPhysics Fri, 05/25/2018 - 11:03 Permalink

Look I'll take the guaranteed money.. say you have ten years until retirement and  you had grabbed the 10 at 3%.  You have an IRA and 100K, compound and tax deferred I'll take the 30K.  When the EU goes systemic unwind.. I'll shake my head at people who clung to P/E and dividends in the market.  Now onto gold and silver I stack a little as a prepper but the bid/ask on any bullion is > greater than the 3% and you have to see compound allot of inflation in a world with:

 

Too many debts chasing too few dollars

older G10 economies and demographics

robotics and AI dampening wages  

if deflation kicks back in and the market drops.. and you get that big ZIRP return on your savings... that 3% locked in will be good because that is what supposedly a good economy gives..

I'll be here to tell you I told you so

uhmm gold and silver are down.. 

BTW albeit small I bought some 5year at above 3% on dividends of 2.93  in year 8

In reply to by LawsofPhysics

Dilluminati LawsofPhysics Fri, 05/25/2018 - 11:21 Permalink

I'll diversify when the real toilet load starts swirling.. I'd see the BRICS and EU swirl first and when I see real signs of contagion I'll move and diversify.. but yeah now I'm all about the 3.2% at the 5 which was for sale last week and the 2.9 on 8 

I'll just take the easy money

because when too many debts chase too few dollars when wealth destruction is in high gear.. that is deflation

I'll hit the gun show this weekend and invest in the other precious metal lead..

But if I'm investing I'm earning and not "hoping"

In reply to by LawsofPhysics

InnVestuhrr Fri, 05/25/2018 - 11:03 Permalink

My post from May 23:

"With all the shit going on globally, anyone who shorts US Treasuries is suicidal. The global system is fragile, teetering on the edge of a crash, and when it comes, capital will flee to US Treasuries.

The most money I ever earned on the portfolio I manage has been trading US Treasuries."

 

I cashed in on part of my US Treasury position, from 3.2x% down to 3.08x% - KACHING $$$$$$$$$$$$$$$ AGAIN !!!!

I LOVE  LOVE LOVE when the herd shorts US Treasuries and feeds my profits - PLEASE PLEASE PLEASE do it again !!!!

johnjkiii Fri, 05/25/2018 - 11:04 Permalink

It's called profit taking. The trend is still for higher rates but there's resistance here since the fools who bought in 2013 are now even finally and are getting out. Very normal. The fundamental trick occurs at the rate at which the Fed causes recession. Of course, if your attention span is an hour, this must be devastating.