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Treasury yields head south fast following Bernanke's dovish tilt last night, the 10-year off...

Treasury yields head south fast following Bernanke's dovish tilt last night, the 10-year off about 10 bps to 2.56%. TLT +1.5% premarket. The 5-year yield (IEI) is back down to 1.4%, off 20 bps since hitting 1.6% last week - a level making little sense with the Fed sitting on a 0% Fed Funds rate for the next 2-3 years. TBT -2.4% premarket.
Comments (14)
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Bernanke can't have 4.75% mortgage rates, and he knows it.
    11 Jul 2013, 08:12 AM Reply Like
  • dbrown_NV
    , contributor
    Comments (79) | Send Message
     
    Damn it Bernanke, pick a stance and stay there longer that a month or two. This is just out and out market manipulation.
    11 Jul 2013, 09:53 AM Reply Like
  • jeezuz30
    , contributor
    Comments (286) | Send Message
     
    To me it sounds like he's saying the same thing he's said all along, just the market interpreting differently.
    11 Jul 2013, 11:49 AM Reply Like
  • Jocardan
    , contributor
    Comments (29) | Send Message
     
    If he raises the rates, the gov will pay more to borrow, making our debt even worse, so I don't think there will be any big hurry on the Fed's part to raise interest rates back to "normal" where seniors can invest in 5.5 to 7.5% CDs and not worry about their money being flushed down the Wall Street toilet when the markets turn bearish.
    11 Jul 2013, 10:33 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8204) | Send Message
     
    I think it's important that we take care of the seniors. Who cares if higher interest rates chokes off the economy and juniors can't get jobs?
    11 Jul 2013, 02:59 PM Reply Like
  • stckpkr7000
    , contributor
    Comments (78) | Send Message
     
    What a scum ball criminal manipulator! It has become one big greedy sham and anyone with half a brain realizes as much.
    11 Jul 2013, 11:34 AM Reply Like
  • jeezuz30
    , contributor
    Comments (286) | Send Message
     
    Instead of being on the sidelines and angry why don't you get in the market and enjoy the ride up.
    11 Jul 2013, 11:50 AM Reply Like
  • EK1949
    , contributor
    Comments (1477) | Send Message
     
    "It has become one big greedy sham and anyone with half a brain realizes as much."

     

    That's right, every fool knows this. Bernanke is no fool, so he thinks differently. He thinks higher rates would kill the economy, and the market behaves as though he's right. Maybe it's not the height of wisdom what anyone with half a brain believes.
    11 Jul 2013, 06:58 PM Reply Like
  • dbrown_NV
    , contributor
    Comments (79) | Send Message
     
    Jeezuz30:
    Nope. While he what he said did get over-interpreted by the market, the first comments indicated that QE was going to end in the near future. Yes, "near" is subjective. Then he comes out yesterday with comments saying that QE was NOT going to end soon, with "soon" also subjective.

     

    I can handle the uncertainty of Fed action, it's part of market play. I can handle the Fed providing guidance on future action, that also is a part of the modern economy and has been for some time. What absolutely infuriates me is the mixed message being sent in completely opposite directions in such a short time. When Bernanke tweaked the markets the first time and Obama said he was on the way out, he should have been out that day.
    12 Jul 2013, 08:42 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8204) | Send Message
     
    Au contraire, That provided a great selling opportunity on the VIX related ETFs. It is hard to make money at a low level of VIX. Thank you Mr. Chairman is all I say.
    12 Jul 2013, 08:43 AM Reply Like
  • dbrown_NV
    , contributor
    Comments (79) | Send Message
     
    Macro Investor: So, you accidently found an ETF that happened to work in the direction you picked because of a comment you had no clue was going to happen and that makes you a genius?
    12 Jul 2013, 10:15 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8204) | Send Message
     
    Yes, accidentally found indeed. :-)

     

    Stress on accidentally.
    12 Jul 2013, 10:26 AM Reply Like
  • dmiller518
    , contributor
    Comment (1) | Send Message
     
    Which are some VIX related ETFs? Does Bernanke actually publish his speaking schedule?
    14 Jul 2013, 11:26 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8204) | Send Message
     
    VXX, SVXY, XIV, UVXY ... and yes, the schedules are posted in the Fed's web site.
    14 Jul 2013, 02:20 PM Reply Like
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