Beginning of the END for the Bond Market...

[Gaillo]

While we've been yakking away about GIM1/GIM2... this little financial tsunami is happening:

From Marketwatch -

The Bell Begins to Toll for Bonds

http://www.marketwatch.com/story/bell-begins-to-toll-for-bonds-2010-04-02


Last week was pretty scary in the bond market.

Three auctions -- of two-, five-, and seven-year Treasurys -- flopped, as buyers, especially foreign investors, sat on the sidelines.

That triggered a huge sell-off in Treasurys, the world's most liquid fixed-income market...

...As you can see, the yield on the 30-year Treasury peaked above 14% in 1981, then started a steady decline to its late 2008 low of 2.6%...

[philo beddoe]

good find :) since they are more mainstream, you can bet it will be worse than they predict

[General of Darkness]

A sell off in treasuries leads to bad things. I think we're in for a bumpy road. Hold on to your hat.

[madfranks]

Remember last year how the Fed started their bond buying program, to the tune of $300 billion? I think they may be able to pull that off once, maybe twice more before things really start to fall apart. Watch for a new QE program to surface later this year as they try to force these interest rates down again.

[General of Darkness]

Remember last year how the Fed started their bond buying program, to the tune of $300 billion? I think they may be able to pull that off once, maybe twice more before things really start to fall apart. Watch for a new QE program to surface later this year as they try to force these interest rates down again.


MF - YEAAHHH, but the problem is that what we're talking about isn't free markets. With the khazar run FED basically counterfeiting money, or something that looks like money they don't have to worry about interest rates. The future will be determined or be defined by the countries that can't employ people because the U.S. won't increase their debt to purchase more crap. Interesting times.