10-Year Hits 3.5%

The selloff in bonds is unstoppable. Bernanke is furiously scratching his head at this point, as he envisions the future: S&P at 2,000, and a 30 year mortgage at 20%. Brilliant.

Comments

[RiskReturnO...:]

Excellent. For TBT holder, watch the closing yield of 10 year treasuries carefully.

If volume stays high and we end higher than 3.5% for the next few days, then we'll have to move the upside target to 4.0%.

For now, enjoy the profits from riding the TBT from 2.5% to 3.0% (many said this was the ceiling), from 3.0% to 3.3% (this was the "PIMCO ceiling"), from 3.3% to 3.5% (no one said this, but I've used it for my TBT trade), ...

May 26 04:14 PM

[HardwoodFlo...:]

Unintended Consequences.

May 26 04:16 PM

[bricki:]

Also inevitable consequences.

May 26 04:18 PM

[doubleguns:]

Stagflation tsunami is starting to swell up. Better get off the beach.

May 26 04:54 PM

[User 305589:]

Imho themarket is testing the resolve of the fed and their 'pain-level': at what point do they start to aggressively buy long dated Treasuries? That point will henceforth pretty much determine where the ceiling in long term yields will be for the coming months. And yes, I know, I know, a lot of people here are convinced that the fed has lost the battle and cannot control the long interest rates. I beg to differ; they have plenty of ammunition left and they will use it at one point. That this will make the problem worse, longer term, is true but heck - isn't that a politician's and a central banker's 'strategy' anyway? Try to find temporary 'solutions' that postpone the inevitable and let someone else deal with the ultimate fallout. In this regard, Obama hasn't changed one iota of the established practices in the White House. Since he keeps telling everybody 24/7 'yes we can' then he might simply not want to?

May 27 04:09 AM

[reluctantQuant:]

don't
fight
the
Fed.

--rq

May 27 08:45 AM

[y3115y:]

This time, the Fed had lost, and has no more option.

May 27 09:02 AM

[morph366:]

Re rq
I hope you're right but I think you're wrong

May 27 09:20 AM

[harammph:]

Looking at a daily chart of the 10 year over a Years' span gives me an upper range but that's it.

Who the Hell uses a Day to forecast the next day.

Each Day is unique onto itself.

May 29 01:11 AM