A Lack of Faith, Disturbing?
Over at a financial forum...
P – "long-term rates are suddenly ticking up as bond buyers have lost faith that the Central Banksters will be able to keep a lid on inflation"
P – "long-term rates are suddenly ticking up as bond buyers have lost faith that the Central Banksters will be able to keep a lid on inflation"
More so a rebirth of hope for much needed monetary flows in the form of "dollars" and some form of economic recovery rising in the distance. Good luck there.
By now those rogue bond traders should know the power of the dark side and all the carnage which that widow makers trade has left in its wake. Just chart any duration going back to only 2008 to see the tip of that iceberg or ask anyone short on 10 yr JGB in the last 30 years.
By now those rogue bond traders should know the power of the dark side and all the carnage which that widow makers trade has left in its wake. Just chart any duration going back to only 2008 to see the tip of that iceberg or ask anyone short on 10 yr JGB in the last 30 years.
With obvious continued global "dollar" pressure (98) and the global economic contraction still in full effect, and it won't be letting up anytime soon, this bond sell off seems a clearly misplaced act of faith.
Someone thinks the bond bubble is going to burst? That would be nice, however, when the cacophony from the idiots at the Fed warns as such, which it is, its a damn good bet we have not yet hit the apogee.
Someone thinks the bond bubble is going to burst? That would be nice, however, when the cacophony from the idiots at the Fed warns as such, which it is, its a damn good bet we have not yet hit the apogee.
I pay little heed to the misdirection and disinformation reguritated by Fed-iots and rogue traders. I put faith in the dark side, the Eurodollar futures curve. This dictates the cost of those hard to find wholesale "dollars" globally, which is where the rubber meets the road, and it is virtually pancaked.
What does that pancaked curve tell you? How much premium will you lend me those dollars for, at this duration? The long end has come down to virtually meet the short end.
This tells one everything they need to know about the anticipated future cost of both short and long duration wholesale loan funds, which is what keeps the system greased and wheels turning, and the economic expectations consideration contained therein.
This tells one everything they need to know about the anticipated future cost of both short and long duration wholesale loan funds, which is what keeps the system greased and wheels turning, and the economic expectations consideration contained therein.
I find these cackling Fed talking heads, who don't know money from mud, and these rogue traders lack of faith in what ED clearly screams out loud, disturbing. Out.
Upon further review, as indicated by the concomitant rise in US Dollar Libor, Negative Swap Spreads and US Bond Yields, is there something nasty lurking in the woodshed? More to come tomorrow.
Upon further review, as indicated by the concomitant rise in US Dollar Libor, Negative Swap Spreads and US Bond Yields, is there something nasty lurking in the woodshed? More to come tomorrow.
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