Loading ...TERROR-IFFS : It’s all about the 10 year US Bond Rate
OK
We have multiple Analysts who believe that the Trump Tariff Bombshell is NOT
really all about Fair and Free Trade ( although that may be a side benefit )
Trump and Comp Pulled this Gambit Now with the express purpose of creating Chaos
for the express purpose of driving money out of the extremely frothy Stock Markets and into
Bonds…when Bonds are seen as a safe haven they rise in price and the Yields drop ( Risk Off Trade)
The USA has been saddled By Bidens Massive Borrowing with 10 Trillion in Treasury Bonds coming due and needing refinancing
By dropping rates (via creating Global Trade Uncertainty and General Chaos) from nearly 5% when Trump was sworn in to now under 4% and dropping fast…The US can re-finance this debt and save Hundreds of Billions on interest payments
Bold and Brilliant Strategy !
Luongo figured this out immediately as have others in our camp
Here is Analysis I received in an Email (credit Finacealot X account via pedro )
Explains it in a nutshell
OK…LETS WATCH THE 10 YEAR YIELD LIKE A HAWK…LOOK AT THIS PERFECT CHARTOLOGY !!!
Amazing analysis Fully! The chart is stunning. A H&S top in bond yields. I would’ve never thought about looking at it. It makes total sense.
Those black text boxes look familiar.
Probably should have included the link.
They probably came from FinanceLancelot, who has been tracking the Rug Pull by Wall St since Q4.
He’s noted that there’s zero activity in the Reverse Repo lounge lately, oddly. (ie, no liquidity rescue)
He’s also asking, what if this crash doesn’t drive rates down, or down enough?
EW folks (TOTM) have this as a wave 2 pullback in yields from Wave 1 up that took out Silly Valley and Republic.
So we won’t revisit the covid yield lows to make new ones.
PS — in my notes to folks this weekend on this topic, I put all the blame squarely on Yellen.
For failing to use long bonds in 2021 to lock in long term financing at low rates.
Short rates were cheaper, but only for the myopic.
This should be called the Yellen Crash when its all said and done.
Thanks for the source pedro
I didn’t know who to credit ( other than you )
Sundance is picking up on this now, citing to 4chan !!!!
Tent says I’m posting too quickly, but it failed to accept the link
https://x.com/TheLastRefuge2/status/1908885226123587926
EXCELLENT…GOOD FOR 4 CHAN WHOEVER THEY ARE
Same H&S on the 30-year – just with a slanted neckline