Yo, They’re Selling The Shit Out Of Some Government Bonds
Yeah, so the cacophony of hawkish commentary from central bankers has triggered a global selloff in government bonds.
As noted earlier, bund yields are higher by goddamn 20bps since Monday - and that's a lot considering the starting point (25bps).
Treasuries are being sold (that's three straight days), gilt yields are higher (Carney comments), etc. etc.
You'll note that USTs came under quite a bit of pressure about an hour ago, as 10Y and 30Y futs slid below Wednesday’s lows as volumes su
Wake me when they hit 3-5%.
Heisenberg – How does normalization play out? I’m in the coming deflation and lower long-term rates camp, but the fed’s normalization does appear to be a tidal wave in the opposite direction (at least with regards to rates). Where are long-term rates headed, in your view?
probably a series of tantrums where DM bond yields spike into illiquid markets and then, ultimately, back into stimulus: https://heisenbergreport.com/2017/06/20/there-is-no-exit/
Thanks. In agreement. A friend of mine who has researched fed and QE mechanics is long Treasury futures in anticipation, and I’m waiting for 3-3.5% 30yr before initiating my own position. Would love to post his explanation here but I don’t think he would want to be attributed.