The FOMC meeting provided the first glimpse into possible tapering of monetary stimulus, and this in tern has led to some aggressive steepening in the whole Bond Yield Space across all counties.
Euribor Spreads on a 3 month basis have all pushed up 4 prices, and short sterling has seen some aggressive steepening also as we have pushed up 20 basis points on the Jun14Dec15 yield Spread.
I've personally cautiously shorting into this move up, as it is very aggressive, playing with small size Below is a look at Short Sterling Steepening.
We can see Dec15 off 24 ticks this morning, and Jun14 off 5 ticks. Looking forward, i think we will come off a bit but data will really dictate how these spreads continue. Further good data is likely to push these spreads up further as interest rate hikes will start to be put on the table. Right now I'm looking to buy dips, and short new highs if it reaches there. We have existing home sales and Philly Fed later on this afternoon, and more good data could push this up further.
Euribor Spreads on a 3 month basis have all pushed up 4 prices, and short sterling has seen some aggressive steepening also as we have pushed up 20 basis points on the Jun14Dec15 yield Spread.
I've personally cautiously shorting into this move up, as it is very aggressive, playing with small size Below is a look at Short Sterling Steepening.
We can see Dec15 off 24 ticks this morning, and Jun14 off 5 ticks. Looking forward, i think we will come off a bit but data will really dictate how these spreads continue. Further good data is likely to push these spreads up further as interest rate hikes will start to be put on the table. Right now I'm looking to buy dips, and short new highs if it reaches there. We have existing home sales and Philly Fed later on this afternoon, and more good data could push this up further.
Jesus Christ, operating at the helm of the Economy of God, Ephesians 1:10, terminated Liberalism, and its Banker regime, by enabling the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.01%, on May 24, 2013. This “extinction event” killed the Creature from Jekyll Island, that is the US Fed. God’s Son did what Ron Paul could not do; he ended the US Fed.
ReplyDeleteAnd now, continuing on, Jesus Christ buried Liberalism, putting its Milton Freidman Free To Choose Floating Currency System, in the grave, on July 5, 2013, by first enabling the bond traders to call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.72%; of note, the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepend sharply, as is seen in the Steepner ETF, STPP, steepening, better said, blasting vertically higher; and secondly by enabling the currency traders to call the US Dollar, $USD, higher to 84.71, and to sell invididual currencies; those sinking included the Indian Rupe, ICN, -1.2%, Emerging Market currencies, CEW, -1.4%, the Swedish Krona, -FXS, 1.5%, the Euro, FXE, -1.5%, and the British Pound Sterling, FXB -2.4%.
Friday July 5, 2013, was Black Friday for credit, as the bond vigilantes conducted ongoing sluagher in the credit markets. And Friday July 5, 2013, was Black Friday for currencies worldwide as the currency traders continued their successful currency war of competitive currency devaluation on the world central banks.
Marc to Market writes in Zero Hedge The Dollar Index made new three year highs before the weekend and after the employment data (and has been rising from an April 2011 low of 73). Although it is flirting with the top of its Bollinger Band, there is no compelling sign that the move is exhausted. It has rallied over 5% off the low on June 19, when it recorded a key upside reversal. Our next target is the downtrend line drawn off 2009 and 2010 highs and comes in near 86.00. This environment is not good for the dollar-bloc, which had been the market's darlings for much of the post-Lehman period. Both the Canadian and Australian dollar recorded new lows for the year last week and the adjustment is not over.
Beginning in May 2013, Jesus Christ, as steward, acting in the administration plan of God, for the fullness and completion of every age, dispensed debt deflation to destroy first credit, AGG, and second Major World Currencies, DBV, as well as Emerging Market Currencies, CEW, terminating peoples trust in the elected officials, and world central bank monetary policies of investment choice and their credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, financialization of stocks and ETFs, dollarization, and Forward Guidance.
EU Observer writes Portugal and Greece highlight eurozone fragility. Soon out of the PIGS, that is Portugal, Italy, Greece, and Spain, banking and nation state insolvency, Jesus Christ is going to cause a stroke to one of mankind’s seven institutions, specifically, the head of Finance, Commerce, and Trade. This is known as Financial Apocalypse, that is a global credit bust and financial system breakdown, as foretold by John the Revelator in Revelation 13:3-4. Yet surprisingly, economic capability will recover, this will come through Regionalism, replacing Crony Capitalism, European Socialism, and Greek Socialism, as well as Russian Communism and Chinese Communism, Revelation 13:1-4.
With Liberalism, both terminated and buried, people will come to trust in Authoritariaism’s regional governance, and economic policies of diktat and their debt servitude schemes, such as, regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, and austerity measures.
Libertarians and Austrian Economists abhored Liberalism’s Interventionism; they will abhore even more Authoritarianism’s Regionalism.