this situation is getting worse....aggressive FED action means huge rally in bonds for a year or more.
Bonds Behaving Short
- Thread starter Spectre2007
- Start date
channel
http://finance.yahoo.com/q/bc?s=^TNX&t=my&l=off&z=l&q=l&c=
before the next cycle the lows on the yields will be tested. When notes were hitting 5.25%, pointed out that the countertrend against the long term rally can be severe. Look where we are now.
before the next cycle the lows on the yields will be tested. When notes were hitting 5.25%, pointed out that the countertrend against the long term rally can be severe. Look where we are now.
=p
fractal, its very similar to the fractals on the move up during the volker era.. in yields.
this chart from the above link is extremely important for bond holders. The asians will break it, so they realize paper gains, on huge bond holdings.
http://articles.moneycentral.msn.com/Investing/JubaksJournal/FedKillsAKeyInflationGauge.aspx
I'd certainly agree that a measure of the money supply like M3, which combines M1 (currency in circulation, commercial bank demand deposits, automatic transfers from savings accounts, savings-bank demand deposits and travelers checks) with M2 (overnight repurchase agreements between banks, overnight eurodollars, savings accounts, CDs under $100,000 and money market shares) is woefully inadequate in an age when securitizations of mortgages and other debt instruments, the debits and credits of the international carry trade in currencies and the vast derivative markets can add hundreds of billions of global liquidity in a matter of hours.
I'd certainly agree that a measure of the money supply like M3, which combines M1 (currency in circulation, commercial bank demand deposits, automatic transfers from savings accounts, savings-bank demand deposits and travelers checks) with M2 (overnight repurchase agreements between banks, overnight eurodollars, savings accounts, CDs under $100,000 and money market shares) is woefully inadequate in an age when securitizations of mortgages and other debt instruments, the debits and credits of the international carry trade in currencies and the vast derivative markets can add hundreds of billions of global liquidity in a matter of hours.