10Yr Yields declined as international Capital Flows began demanding dollars out of the fear as to what is occurring outside the USSA.
Yields will remain under suppression due to YCC Interventions.
It is axiomatic the Trade is contrary to the Vast Herd of Bond Buyers, master of the obvious type
statements withstanding, We are opposing the TLT trade for the Interediate durations.
Demand for perceived "Safety" - the very last thing it actually is imho.
Europe, as we have indicated for months now, remains a basket case.
For as bad as it is here, it's worse there.
However, this is short term in its duration as the USSA is losing favor as a "Partner" of actual substance.
The Long Con remains in trade.
It will get a lot worse outside the USA which remains bullish on capital inflows.
Simply watch France as they are teetering on another Bastille Moment.
That said, the objective of the Level Pullers is not friendly.
Sending hoards of cash into the Fed Reverse Repurchase Market - reduces the cash in the Banks. This ONLY accelerates the liquidity crisis, which, in the very short term can have an important effect on Yields.
It is temporary.
Christine LaGarde, has been inferring that a policy shift is taking place which will be a transition in 2022. Stimulus policies have totally failed and the negative interest rates have destroyed the European Bond Market. Inflows to USTs is axiomatic for the EU, for the UK... not so much as they have shown a clear and present desire to position to China's Bond Market... slowly.
The ECB's ONLY tool remaining is the rather hurried rush to digital currency ASAP for Europe is out of time.
It will not go over well and lead to immense Social unrest.
France, Ireland, Spain, Greece, Italy won't simply roll-over.
80 Central Banks around the Globe desire digital currencies according Lagarde - "We think that it's a duty of us to actually have available digital currencies that would operate to the benefit of consumers."
There is nothing the governments ever do that is for the benefit of consumer citizens unless it benefits the Government 1st.
LaGarde intends to end Private Cryptocurrencies.
In her own words - "funny business" in Crypto needs to end, once and for all.
They will be regulated out of business... plan for it.
When you replace "Currency" which comes into existence from DEBT, Governments no longer need DEBT MARKETS
aka Bonds.
Currency no longer exists, Unlimited Pokemon Cards do however.
The ability of the ECB to continue buying endless debt from its member states is coming to an end.
Pressures to break up the EU is growing and this above all is driving the ECB to take drastic actions.
They will cancel the Euro ahead of schedule, sending the FX Markets into a tailspin.
UST Bond HODLers somehow believe this works well for them... it can in the very short term.
Ultimately, the Tide begins to approach our shores as Confidence itself evaporates.
The game of borrowing forever with no intention of paying anything back is coming to an end
and with it the US Bond Markets.
What will be the Value of your Bonds?
They will become "Perpetual" - you will be allowed, permitted and forced to accept a coupon
with no return of principal, that will be in Lock Down for good.
BY Q3 2022, the axiom will be in full swing.
This is why the Equities Complex will begin a very rapid ascent
as Bonds and Real Estate Fail.
You can't keep a good bunch of Degenerates DOWN when
the TINA's are Nil.
Preteding Bonds are winning against Real Inflation is a large mistake imho, as in no
way are the underlying REAL VALUES keeping pace.
The USSA is heading into Chapter 11 and with it, it's primary feeder lot of Debt.
We continue to position within Options from 140 - 170.
Trading the TLT into Sells has repeatedly worked on 7 seperate occasions, it has more
than offset Put losses.
Today is simply another example of 151s failure to low 150s, yesterday it was the 151.50s
failure to lows. It is clockwork trading, simple, direct and to the point.
Pandering to losses seems to be en vougue for the Bond HODLers, a defense mechanism
for the Herd.
All's fair here, no issues there.
We will simply continue constructing a large SELL Position into the wreckage.
It will become 12.5% of Capital allocation,it is presently 3.9%.
No Margin required as that sits with the Buyers.
Yields will remain under suppression due to YCC Interventions.
It is axiomatic the Trade is contrary to the Vast Herd of Bond Buyers, master of the obvious type
statements withstanding, We are opposing the TLT trade for the Interediate durations.
Demand for perceived "Safety" - the very last thing it actually is imho.
Europe, as we have indicated for months now, remains a basket case.
For as bad as it is here, it's worse there.
However, this is short term in its duration as the USSA is losing favor as a "Partner" of actual substance.
The Long Con remains in trade.
It will get a lot worse outside the USA which remains bullish on capital inflows.
Simply watch France as they are teetering on another Bastille Moment.
That said, the objective of the Level Pullers is not friendly.
Sending hoards of cash into the Fed Reverse Repurchase Market - reduces the cash in the Banks. This ONLY accelerates the liquidity crisis, which, in the very short term can have an important effect on Yields.
It is temporary.
Christine LaGarde, has been inferring that a policy shift is taking place which will be a transition in 2022. Stimulus policies have totally failed and the negative interest rates have destroyed the European Bond Market. Inflows to USTs is axiomatic for the EU, for the UK... not so much as they have shown a clear and present desire to position to China's Bond Market... slowly.
The ECB's ONLY tool remaining is the rather hurried rush to digital currency ASAP for Europe is out of time.
It will not go over well and lead to immense Social unrest.
France, Ireland, Spain, Greece, Italy won't simply roll-over.
80 Central Banks around the Globe desire digital currencies according Lagarde - "We think that it's a duty of us to actually have available digital currencies that would operate to the benefit of consumers."
There is nothing the governments ever do that is for the benefit of consumer citizens unless it benefits the Government 1st.
LaGarde intends to end Private Cryptocurrencies.
In her own words - "funny business" in Crypto needs to end, once and for all.
They will be regulated out of business... plan for it.
When you replace "Currency" which comes into existence from DEBT, Governments no longer need DEBT MARKETS
aka Bonds.
Currency no longer exists, Unlimited Pokemon Cards do however.
The ability of the ECB to continue buying endless debt from its member states is coming to an end.
Pressures to break up the EU is growing and this above all is driving the ECB to take drastic actions.
They will cancel the Euro ahead of schedule, sending the FX Markets into a tailspin.
UST Bond HODLers somehow believe this works well for them... it can in the very short term.
Ultimately, the Tide begins to approach our shores as Confidence itself evaporates.
The game of borrowing forever with no intention of paying anything back is coming to an end
and with it the US Bond Markets.
What will be the Value of your Bonds?
They will become "Perpetual" - you will be allowed, permitted and forced to accept a coupon
with no return of principal, that will be in Lock Down for good.
BY Q3 2022, the axiom will be in full swing.
This is why the Equities Complex will begin a very rapid ascent
as Bonds and Real Estate Fail.
You can't keep a good bunch of Degenerates DOWN when
the TINA's are Nil.
Preteding Bonds are winning against Real Inflation is a large mistake imho, as in no
way are the underlying REAL VALUES keeping pace.
The USSA is heading into Chapter 11 and with it, it's primary feeder lot of Debt.
We continue to position within Options from 140 - 170.
Trading the TLT into Sells has repeatedly worked on 7 seperate occasions, it has more
than offset Put losses.
Today is simply another example of 151s failure to low 150s, yesterday it was the 151.50s
failure to lows. It is clockwork trading, simple, direct and to the point.
Pandering to losses seems to be en vougue for the Bond HODLers, a defense mechanism
for the Herd.
All's fair here, no issues there.
We will simply continue constructing a large SELL Position into the wreckage.
It will become 12.5% of Capital allocation,it is presently 3.9%.
No Margin required as that sits with the Buyers.