U.S. Bond Market Failure as China and Russia Join PIMCO in Selling U.S. Treasury
Interest-Rates / US Bonds Feb 16, 2011 - 03:56 AM GMTBy: Justin_John
The 10 year yield is waiting like dynamite with fuse lit, ready to blow the top off. 10 year yield are holding at 3.6% and any clean break of 3.7% will see 5.3% as the next target literally killing the recovery and taking down equities with it for the next 10 years.
These flows occurred as the yield on 10-year notes jumped from a low of 2.46 per cent to a high of 2.96 per cent during the first half of November. With Treasury yields having recently stabilised – the 10-year note is around 3.40 per cent, down from a high of 3.56 per cent in mid-December – it remains to be seen whether official sales of US government debt continued late last year and into 2011.
The ultimate in market failure is upon as the much feared collapse of the 100 trillion bond market is now upon us.
Source: http://dawnwires.com/investment-news/china-russia...
By Justin John
Justin John writes for DawnWires.com and is a Director at a European Hedge Fund.
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