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Ride Of The Valkyries (Endangered Species)

"Now I can’t stop humming Ride Of The Valkyries, while imagining bond vigilante helicopter gun-ships laying the market to waste", SocGen's Kit Juckes wrote last September, as bond yields snapped higher after overshooting to the downside the previous month, when an acute growth scare tied to escalating trade tensions inverted the 2s10s. Fast forward nearly a year, and the fabled bond vigilantes have gone from rare breed to endangered species. Although bonds sold off the most in more than two months this week, the back-up in yields was paltry considering the circumstances, which included a record refunding, as Treasury looks to finance America's ballooning deficit. "The biggest bond market in the world made some folks nervous this week", Bloomberg's Emily Barrett (who says she "isn't sure if negative real yields exist metaphysically") wrote Friday, before noting that "the concerns stopped short of being a rallying cry for bond vigilantes". Thursday's 30-year auction was no walk in the park, but this week's 3-year and 10-year sales went down fine. By the time it was all said and done, benchmark US yields were cheaper by around 15 bp, hardly a bloodbath in bond land, especially
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9 comments on “Ride Of The Valkyries (Endangered Species)

  1. George says:

    Not to argue BUT….”.we print them in your name and borrow them from your future.”.. What the heck it is a weekend coming up so time for the frivolous……

  2. joesailboat says:

    Hold your ground Mr. H

  3. fxw says:

    If everything is so easy for the government why is it so hard for me? Or does that question answers itself?

  4. payshunt says:

    The Great Whipsaw. Anything with a whiff of leverage took a permanent haircut, everything else just has a panicked air about it

  5. Anonymous says:

    The question is not whether the US can print dollars today to buy anything around the world. The question is for how long others will accept this paper. The tipping point could come a lot sooner than some may think.

    Ultimately productivity, innovation, etc drives wealth and quality of life not money printing and seizing the moment.

    Not surprising that gold has gone parabolic on neg reals but also massive money printing (since gold is priced in dollars).

    MMT may have a shorter life than many realize. There have been a few smart Fed Chairs that just missed this Golden Goose. How clueless they were………………………

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