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Bond Rates Continue To Rise

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http://investmentwatchblog.com/panic-alert-u-s-10-year-bond-rates-exploding-now-2-71/

Panic Alert: U.S. 10 Year Bond Rates Exploding! Now @ 2.71%!

EVERYTHING is now tied to the Bond rates. Because of the financial schemes played for years, derivatives, swaps etc.

WHEN not if, Bonds rates get too high the global financial system will unravel in an unprecedented EPIC way.

The most important number for the market: 2.75%

Round integers like 1,700 on the S&P 500 are well and good, but savvy traders have their minds on another number: 2.75 percent

That was the high for the 10-year yield this year, and traders say yields are bound to go back to that level. The one overhanging question is how stocks will react when they see that number.

“If we start to push up to new highs on the 10-year yield so that’s the 2.75 level—I think you’d probably see a bit of anxiety creep back into the marketplace,” Bank of America Merrill Lynch’s head of global technical strategy, MacNeil Curry, told “Futures Now” on Tuesday.

And Curry sees yields getting back to that level in the short term, and then some. “In the next couple of weeks to two months or so I think we’ve got a push coming up to the 2.85, 2.95 zone,” he said.

Why Another Great Real Estate Crash Is Coming

There are very few segments of the U.S. economy that are more heavily affected by interest rates than the real estate market is. When mortgage rates reached all-time low levels late last year, it fueled a little “mini-bubble” in housing which was greatly celebrated by the mainstream media. Unfortunately, the tide is now turning. Interest rates are starting to move up steadily, even though the Federal Reserve has been trying very hard to keep that from happening. A few weeks ago, when Federal Reserve Chairman Ben Bernanke suggested that the Fed may start to “taper” the rate of quantitative easing eventually, the bond market had a conniption and the yield on 10 year U.S. Treasuries shot up dramatically. In an attempt to calm the market, the Fed stopped all talk of a “taper” and that helped settle things down for a brief period of time. But now the yield on 10 year U.S. Treasuries is starting to rise aggressively again. Today it closed at 2.71 percent, and many analysts believe that it will go much higher. This is important for the housing market, because mortgage rates tend to follow the yield on 10 year U.S. Treasuries. And if mortgage rates keep rising like this, another great real estate crash is inevitable.

So how long until 'they' get Goldman and Barclays to manipulate this benchmark rate?

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Krugmanite wreckers... meet Mr Market. :D

10 yr yields are still (real) negative.

Hyperinflation a go-go

Edited by R K

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Bernanke about to hit the print button again and corner the market for 10 year Treasury bills?

Bullish for gold and silver then... People here will look back in 12 - 24 months time and realize how cheap gold was.

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Is there a point where that blows up in his face, like a stunt pilot putting a plane through too many spins and turns?

As he's leaving not his fecking problem, its not going to blow up in his face.

However history may not be too kind on his intervention and market manipulation.

At what point this does blow up in the Feds face is anyone's guess. As the entire economic system revolves around market manipulation it's impossible to know when it will collapse and what the trigger will be.

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As he's leaving not his fecking problem, its not going to blow up in his face.

However history may not be too kind on his intervention and market manipulation.

At what point this does blow up in the Feds face is anyone's guess. As the entire economic system revolves around market manipulation it's impossible to know when it will collapse and what the trigger will be.

The whole lot might not collapse in our lifetime, but UK house prices probably will :P

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Bernanke about to hit the print button again and corner the market for 10 year Treasury bills?

Hit the print button again? He hasn't stopped printing yet!

There's some suggestion that the Fed and Treasury are now conspiring to create a synthetic taper ahead of the de facto announcement.

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This is happening in the UK too which is making a bit of a mockery of the interest-rate forward guidance of the Bank of England.

UK borrowing costs

This is on my mind partly because the UK will commit itself to borrowing some £2.25 billion for just over twenty years (2034) tomorrow. Unfortunately that comes as UK Gilt (government bond) yields have surged to an eighteen month high. Last night the ten-year Gilt yield closed at 2.6% and this morning it has pushed higher to 2.63%. So not only have Gilt yields risen and not fallen in response to forward guidance but starting tomorrow there will be an explicit cost for the UK taxpayer.

Hopefully those who are planning to vest their pension and take out an annuity will at least see some benefit from this as the 30 year Gilt yield has risen to 3.67%.

http://www.mindfulmoney.co.uk/wp/shaun-richards/problems-are-mounting-for-mark-carney-and-his-forward-guidance-for-interest-rates/

Those who are looking for a fixed rate mortgage had better get in quickly.......

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This is happening in the UK too which is making a bit of a mockery of the interest-rate forward guidance of the Bank of England.

http://www.mindfulmo...interest-rates/

Those who are looking for a fixed rate mortgage had better get in quickly.......

The "bubble" to end before it begins :lol: Lets hope all the economic chickens come home to s*hit on the UK and it`s economic "policy":lol:

Edited by dances with sheeple

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The "bubble" to end before it begins :lol: Lets hope all the economic chickens come home to s*hit on the UK and it`s economic "policy":lol:

If only there was some mechanism by which the Government could have the Central Bank buy it's own bonds, thus suppressing yields.

But even if such a bizarre setup did exist, they would never in a million years do anything so irresponsible as essentially printing money to fund debt so I guess there is no chance of it happening, right? :lol:

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If only there was some mechanism by which the Government could have the Central Bank buy it's own bonds, thus suppressing yields.

But even if such a bizarre setup did exist, they would never in a million years do anything so irresponsible as essentially printing money to fund debt so I guess there is no chance of it happening, right? :lol:

http://www.bankofengland.co.uk/education/Pages/inflation/qe/video.aspx

They have a video explaining how it all works...

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When will this affect bungs for lending?

Already yank mortgage rates have risen (presumably because most their mortgages are 15 or 30 year fixes so closely follow those bond rates) If the yanks allow that to occur organically (or even a little organically) our mostly variable rate borrowers might be okay one morning and fecked the next.

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When will this affect bungs for lending?

Already yank mortgage rates have risen (presumably because most their mortgages are 15 or 30 year fixes so closely follow those bond rates) If the yanks allow that to occur organically (or even a little organically) our mostly variable rate borrowers might be okay one morning and fecked the next.

Especially if the increase is over £20??

Will be fun for anyone on BTL interest only deal, no capital repaid and the banks playing SVR roulette with the math that made if viable on paper...

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Market Ticker 15.8.13

'3% appears to be a lock, and frankly I think 3.4% is likely as that's the -61.8% target.

This would normally not be a "big deal" except that a huge part of the premise behind the market's rise has been "ridiculously cheap" money (really credit) source games.

I have noted that there's a secular change occurring in rates, and I'm not really inclined to repeat myself in detail here today. But this much I will say -- the evidence continues to mount that this change continues apace and as it does all of the talking heads who have put forward a premise that the last 30 year trend will continue despite the impossibility of it happening are setting you up to be offsides as a major shift in the direction of markets occurs.

You've had plenty of warning -- if you get caught with your pants down this time you deserve it.'

Edited by Sancho Panza

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If only there was some mechanism by which the Government could have the Central Bank buy it's own bonds, thus suppressing yields.

But even if such a bizarre setup did exist, they would never in a million years do anything so irresponsible as essentially printing money to fund debt so I guess there is no chance of it happening, right? :lol:

Wow, a magic rate suppressor, who would have thought? Why are we posting on a thread called "Bond rates continue to rise" then?

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I think it means they can't actually taper, ever!

The Treasury dropped a big 21-day, emergency Cash Management Bill on the dealers on 13/08. CMBs are used to mop up excess reserves. The CMB in conjunction with the scheduled auctions of notes and bonds will soak up all this month's QE leaving nothing left over to propel asset prices higher. In effect, a synthetic taper. If the same thing happens next month we have a trend but I expect Bernanke to have announced the taper proper by then.

:)

http://www.treasurydirect.gov/instit/annceresult/press/preanre/2013/A_20130808_2.pdf

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