Friday, June 21, 2013

Worst Week for Treasury Securities In 50 Years

5Y yields rose a stunning 37% this week - the most in the 50 year record of Bloomberg data. The 38bps increase in yields is also among the worst absolute shifts over that period but off such low levels it is quite a shock, writes Zero Hedge.

Five year Treasury rates since January 2012:

1 comment:

  1. Yes indeed, worst week in Treasury investments in 50 years. The age of investment choice is over and the age of diktat has commenced.

    On Friday, June 21, 2013, Global Stocks. VT, held steady, but Bonds, BND, and a number of currencies collapsed further in an ongoing Fed driven selloff.

    World shares, VT, recovered some lost ground on Friday, after a sharp sell-off triggered by the U.S. Federal Reserve's plan to roll back the asset-buying program which had carried stocks higher. Yet Aggregate, AGG, continued collapsing on the rise of the Interest Rate on the US 10 Year Note, ^TNX, to 2.51%, as well as another steeping of the 10 30 US Sovereign Debt Yield Curve, as seen in the Steepner ETF, STPP, steepening. Jnnk Bonds, JNK, High Yield Junk Bonds, UJP, International Treasury Bonds, BWX, Emerging Market Bonds, EMB, Municipal Bonds, MUB, as well as US Government Debt, GOVT, that is the Zeroes, ZROZ, the 30 Year US Government Bonds, EDV, the 10 Year US Government Notes, TLT, the 7 to 10 Year Treasuries, IEF, and the 3 to7 Year Treasuries, IEI, completely broke down seen in Yahoo Finance Chart of ZROZ, EDF, TLT, IEF, and IEI.
    The sharp rise in yields, such as that on the 10 Year US Government Note, $TNX, and that on the 30 Year US Government Bond, $TYX, seen in their ongoing combined Yahoo Finance Chart, represents the cardiac arrest, death, and burial of credit. Such termination comes from the death of sovereign nation states’ monetary authority, through the credit excesses of credit lords, Ben Bernanke, Hiroki Kuroda, and all the other world central bank leaders. Their monetary policies no longer provide seigniorage, that is moneyness. Fiat money died, May 24, 2013, and was literally buried on June 22, 2013, at the hands of the bond vigilantes who inverted yield curves, steepening them as is seen in the Steepner ETF, STPP, steepening, and who called interest rates higher.

    A new money, that is diktat money is being roled out, or better said called out by EU nannycrats, specifically, European Economic and Monetary Affairs Commissioner Olli Rehn, Austria's Finance Minister Maria Fekter, and the President of the Eurogroup Jeroen Dijsselbloem, who reports have agreed upon a regional framework agreement on June 21, 2013, to provide for regional stabilization of the EMU