The 30-Year Treasury Market Massacre

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Wednesday, March 14, 2012 The 30-Year Treasury Market Massacre From a market standpoint, this is undoubtedly the story of the day. Yields on 30-year bonds are surging (via Bloomberg). So what's going on? In the era of the Euro crisis, a lot of people associate rising rates with sovereign worry, but that's definitely not the story here. The story is that all year, even as the stock market has rallied hard, interest rates on US Treasuries have stayed ultra low, much to the confusion of people. This has been confusing to people because if stocks are rallying, and things are getting better, it stands to reason that people would shift money out of Treasuries, causing yields to rise. So the key here is that rising rates should not be seen as some worry (the way it would be in Italy) but as a new stage of the big risk on move that we've been seeing all year in the stock market. And it's also important to realize that this interpretation is being corroborated in other markets. The yen has been getting demolished for awhile, and remember, the yen is a currency people buy when they're feeling nervous. When people are selling yen, it means people are investing elsewhere and looking for yield and return. So the theme of markets is that the last "Risk Off" holdouts (Treasuries, the yen, gold, etc.) are all getting creamed, while pure risk assets rally. Interesting development. Read » Also On Money Game Today: Making It In The Chinese Market Is About To Get More Complicated DOUG KASS: This Chart Of Apple Looks Exactly Like Google Did Right Before The Economy Completely Melted Down REPORT: The US Used Russia To Issue An Ultimatum On Military Action To Iran People Everywhere Are Falling In Love With The Starbucks Blonde Advertisement CHART OF THE DAY: A Quick Reminder That Higher Oil Prices Are DEFLATIONARY CHART OF THE DAY: How To Spend A Night In A Private Prison CHART OF THE DAY: The One Industry That Never Stops Adding Jobs Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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