Treasuries See Relentless Buying

Briefing.com ^ | 8/4/2011 | Staff

[PieterCasparzen]

10-Yr: +1 11/32..2.474%.. USD/JPY: 78.92.. EUR/USD: 1.4160

Relentless: Treasuries are seeing more safe-haven buying this morning as macroeconomic fears remain front and center. Buying in the complex has dropped the 2-yr yield to a record low 0.2803% as traders look to park their money in maturities across the complex despite the compressed yields. The long bond is up close to three full points which has made for a decline of more than 16 basis points in its yield to 3.743%. A decline of more than 14 bps in the 10-yr yield has dropped it below 2.50% for the first time since early November. As buyers flock to Treasuries the yield curve continues to tighten with the 2-10-yr spread now down to 220 basis points.

[PieterCasparzen]

Now we see a stock market drop.

Governments and central banks - the last thing they want at this point is their own currency to be strong. The Swiss knocked down, then the Japanese.

Funny, other currencies chasing the dollar down kind of takes the pressure off the WH for now.

Stick a fork in Italy. EU is just exasperated. Grrr.

Panic ! Flight to safety. What's the best game in town ? U.S. Treasuries.

I wonder what Mr. G talked about on July 29 at his WS meeting - in other related news:

http://www.startribune.com/business/126409968.html

[jpl]

This is the last great bubble by the way (USG Treasuries).

Down the line when that one finally bursts, there is literally no place left to go.

[Presbyterian Reporter]

Why bother locking up your money for two years when you only get a quarter of a per cent interest?

It would seem to make more sense to just hold the cash and be ready to buy stocks when the Dow drops to 5000.

[sten]

you’re looking to protect your wealth in a paper asset that may yield 3-4% annually?

of course, it may also go to zer0... if zer0 has anything to say about it.

of course, physical metals can never go to zer0

and their ‘yields’ exceed treasuries when the country is tanking

i’d only consider swapping out of metals if/when Sarah is elected

if she isn’t, i’ll go heavier if not all-in

[BenKenobi]

“Governments and central banks - the last thing they want at this point is their own currency to be strong. The Swiss knocked down, then the Japanese.”

Don’t know about you, but I’m still all in the USD. :)

I’m lovin’ it.

[PieterCasparzen]

I’m not saying T’s are good. I’m saying (look at the startribune article - IMHO, it smells like we’re having a “crisis”. I had posted some joking about this a few days ago, this week we’ll seem some crashing in stocks for a while.

That generates a “flight to safety” and therefore pushes Treasuries, which helps our illustrious “government”.

If the Treasury auctions fail - big problems for government.

Can’t say for sure, it just smells that way.

[Longbow1969]

Awww, so nice. People love our treasuries! I assume that means it’s because our treasuries are the only safe place to put money...for now?

The EU zone is melting down, the common currency won’t last much longer. The European social welfare state has failed and is teetering on the edge of collapse - and at the rate we are going we are not far behind.

[PieterCasparzen]

Clever, eh ?

Don’t mind the icebergs, keep the music and champagne flowing...

More Treasuries, anyone ?

[SunkenCiv]

Thanks PieterCasparzen.

• NYT: The Market, Obama's One Economic Upside, Heads Down
• Obama on economy: We are going to get through this (yea, when the voters throw you out)
• Here's The Problem With This Market Crash... (The only thing which will fix our economy)
• Stocks slump as economic, Europe worries contain (Dow-277)
• Stocks are pricing in a new recession. Economic numbers look terrible.
• Obama briefed on S&P downgrade before leaving W.House