“CUP & HANDLE” WARNING OF BOND SELLING & A 3.5% 10Y UST — SOURCE: Sven Henrich via NorthmanTrader.com The 10 year has broken out of its cup and handle pattern: The pattern incidentally targets 3.5% and that is way above Gundlach’s panic moment for stocks.
MATASII CALL: 10 UST (TNX) 3.30% BY YE 2018
MATASII CALL: 10 UST (TNX) 3.30% BY YE 2018
MATASII: 10 UST YIELD ~2.85 June 2018
MATASII: 10 UST YIELD ~2.85 June 2018
UNDERSTANDING THE 2017 US$ WEAKNESS Not shown in the chart above is the US Treasury selling pressures from China and Japan as they reduced their dollar FX Reserves. It really began to increase after the Trump election victory. Prior to this the banks were already concerned with what they saw ahead for the US Economy […]
DOLLAR FUNDING COSTS (FX HEDGING COSTS) SURGE – “BASIS SWAPS” WILL POTENTIALLY CURTAIL UST DEMAND — SOURCE: 12-27-17 ZeroHedge – “In An Unexpected Outcome, Trump Tax Reform Just Blew Up The Treasury Market” — Over the past week we have shown on several occasions that there once again appears to be a sharp, sudden dollar-funding […]
DOLLAR FUNDING COSTS (FX HEDGING COSTS) SURGE – “BASIS SWAPS” WILL POTENTIALLY CURTAIL UST DEMAND — SOURCE: 12-27-17 ZeroHedge – “In An Unexpected Outcome, Trump Tax Reform Just Blew Up The Treasury Market” — Over the past week we have shown on several occasions that there once again appears to be a sharp, sudden dollar-funding […]
CREDIT RISK TRANSFER (CRT) BONDS THE NEW “BIG THING” FOR BOND YIELDS Floating Rate, Credit Risk Transfer (CRT) Bonds among best-performing debt of year (>10% v 7.2% HY & 5.9% IG), Fannie Mae and Freddie Mac said they probably will sell around $13 billion of credit-risk transfer securities in their main programs in 2018, Planned tax […]
IMF WARNS: EM DEBT NEAR POTENTIAL TIPPING POINT DUE TO SIZE OF LOOMING ROLLOVERS Tighter policy to sap funding pool for emerging nations Half of total external debt stock of EM issuers due by 2022 — SOURCE: 12-19-17 Bloomberg – “IMF Warns One of Most Crowded Bond Trades Near Tipping Point” — It’s one of […]
