Why the 10 year yield is going to 5%

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Here is a quote from bloomberg.


" Indirect bidders, which include foreign central banks, bought 21.1 percent of the $13 billion in five-year notes, down from 45.8 percent last month, the Treasury said. The drop in debt prices wiped out more than half the rally the past two days. The Treasury will sell $13 billion of 10-year notes tomorrow."

The foreigners are getting tired of buying cheap money.. they are starting to demand higher rates...

Technically the 10 year broke out of a major trading range.. look out..
 
But what about all those dollars for which the world is so crazy about? What are they purchased for? Stocks, bonds, lottery tickets...?
 
this is only valuable post i've seen in days. let's get more like this:


Here is a quote from bloomberg.


" Indirect bidders, which include foreign central banks, bought 21.1 percent of the $13 billion in five-year notes, down from 45.8 percent last month, the Treasury said. The drop in debt prices wiped out more than half the rally the past two days. The Treasury will sell $13 billion of 10-year notes tomorrow."

The foreigners are getting tired of buying cheap money.. they are starting to demand higher rates...

Technically the 10 year broke out of a major trading range.. look out..
 
I think what Kin means by SCUM are these glorified Mortgage Brokers who think they are the hottest thing since Pamela Lee.

They are in for a rude awakening once the dust settles.
 
The heavy commitments from Asian Central Banks into our Treasury markets the past few years has been part of an effort by foreigners to support the Dollar. With the dollar improving this year and with a gradually less accommodative Fed, it's only natural to see the fervor of buyers in intermediate debt securities subside.
 
Quote from citrus:

this is only valuable post i've seen in days. let's get more like this:


Here is a quote from bloomberg.


" Indirect bidders, which include foreign central banks, bought 21.1 percent of the $13 billion in five-year notes, down from 45.8 percent last month, the Treasury said. The drop in debt prices wiped out more than half the rally the past two days. The Treasury will sell $13 billion of 10-year notes tomorrow."

The foreigners are getting tired of buying cheap money.. they are starting to demand higher rates...

Technically the 10 year broke out of a major trading range.. look out..
More...
mcurto's posts are also very good. They typically contain factual information about the nature of transactions taking place in bond markets.
 
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