Back to an Almost Record Curve

Anyone else getting nervous that treasuries are becoming more volatile than stocks (even though VIX is higher on the day despite the 80/30/0 degree equity rally)?

Udpate: for about 2 seconds we were in historical record territory at 277.717 bps.

Comments

[tunaman4u2:]

I've said it all day, why are we ignoring the 10 yr not to mention killer oil surges

Jun 01 04:55 PM

[lbsterling:]

Affirmative. Regretfully I think the yields must and will rise, with all that entails.

Jun 01 05:00 PM

[tunaman4u2:]

Bots Suck

Jun 01 10:33 PM

[1 of 4:]

Watch, the rise in treasury yields will allow the banks to play the carry trade game and earn themselves out of this mess. They did the same back in '94.

Jun 01 10:56 PM

[willc:]

I think the market is attributing the steepening of yield curve to anticipation of economic recovery, but the real questions shall be if such anticipation is right and whether the steepened yield curve will hit the real economy

Jun 02 03:54 AM

[TeresaE:]

Just the beginning.

Between health care, amnesty, unions, "czars", cap & trade and massive basic budgets, the amount of cash the treasury needs to borrow is astronomical.

We are selling debt faster than ever, and we haven't even started paying for the above.

There is no magic money tree and we are viewed as nearly bankrupt by the rest of the world.

The only people that seem not to realize the direness of our federal (and personal/business) debt is Americans.

Jun 02 08:59 AM

[Gyoza Mimi:]

Well, China is getting a little cross about loading more debt when dollar is plunging. It is unimaginable, but what if it stops financing the American consumption? Plus there are better returns elsewhere now - we all know that we are in the middle of a major bull-market, with 30% monthly returns projected for the next 10 years.

Jun 02 09:05 AM

[MarkitWacha:]

I noticed this 2 months ago and loaded up on TBT options, because the volatility is way underpriced.

Jun 02 10:22 AM

[Bull Run:]

Many are now pointing to a steepening yield curve, as a predicton of a recovery. In the past that may well be true. There is a strange occurance with data and predictions. As long as the data falls within normal guide lines, future predictions often reoccur, but once daya points fall outside of the norm, then all bets are off. Take a recession, led by lack of consumer confidence and spending.The Fed drops rates, house hold savings drops, spending increases, and the GDP rises, and the economy is off to the races. Now take this recession..alittle OFF the data curve. The Feds drop rates, as they always do to spur consumer spending..but this time it's different, household saving go UP not down, consumer spending goes down not UP, banking loans still remain low, Banks are trading NOT loaning, and the GDP goes down sharply. This is always the case with data and predicitons, if the data is NOT within the norms, then the results are often oppsite to the norm. I agree with 1 of 4 comments that banks can make alot of money borrowing from the Feds at Zero and buying the 10 yr. note at 31/2%, but there's a problem.. the prices are falling so the money they make on interest they're losing on price..the question going forward is will they continue to buy further out the yield curve??

Jun 02 11:04 AM