Yields are higher by 200%, only because they’re coming from practically nothing to 0.07%. The rationale behind the sell off in bunds has a lot to do with the fact that bunds are in a bubble. We’re not seeing comparable blow outs in yield in other EU sovereigns. Some might argue Italy’s December 4th referendum is polling poorly and might lead to another EU crisis. Others will suggest the ECB will cease QE in March, leaving holders of bunds woefully exposed.
I simply think this is a momentum fueled sell off in bonds, worldwide. Yields are spiking everywhere.
It’s not exactly high yield at 0.07%. And, furthermore, it’s a good thing to have the German 10yr out of negative territory.
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pig Slaughter time
Copper and oil crashing
Oil is at 3 month highs and higher than it was on Friday. Wtf are you talking about “crashing”?
I see upside on dollar capped here, getting more exposure to gold this morning
Too early to buy the dip in TLT? I share your view on the 30y part of the UST curve – hard to see how long rates move much higher from here imo….piss poor global growth prospects + disinflationary / rigged mkt environment seems like lower 30y all but guaranteed, but timing is tough….