A STRONG DOLLAR ALSO BEHIND BOND RALLY Some investors are buying U.S. Treasurys without hedging against the risk of a decline in the dollar International Carry Trade investors typically hedge their holdings of foreign bonds using derivatives AS A CURRENCY HEDGE, which allow them to borrow a foreign currency in exchange for their own and […]

MARKET RE-POSITIONING UNDERWAY: HISTORIC 6 MONTH EQUITY OUTFLOWS Institutions are shifting in a massive way to Bonds and Money Market Funds as Equity Outflows over the last 6 months have been of historic and and unprecedented levels. The S&P has just suffered its third worst month since the US AAA- rating downgrade in August 2011, […]

INFLATION EXPECTATIONS CURRENTLY DRIVING TREASURY YIELDS The first charts shows the US Treasury Yields as represented by the 10Y Yield - "TNX":   Note in the above TNX chart the October Treasury peaked in yield.   Now look at the ECRI's reporting on US Future Inflation Expectations for both the US Future Inflation Gauge and […]

BONDS OVERBOUGHT ON EXPECTATION OF A FORCED FED INTERVENTION Longer-term Treasuries are overbought. These folks may consider taking some profits on exchange-traded index funds like iShares 20+ Year Treasury (NASDAQ:TLT). This would give us a bounce from our current support levels which we laid out earlier this week: Below is an article by Gary Gordon […]

ARE RECORD STOCK BUYBACKS APPROACHING AN "EMPTY TANK"! Warren Buffett is well known for comparing stock prices to GDP to assess whether stocks are becoming over-valued with inherent levels of excess risk. Stock buybacks this year continue to be financed with corporate leverage.  However, the question is how much more leverage can corporations take on […]

INVESTORS FLEEING HIGH YIELD, SIMILAR TO FINANCIAL CRISIS Investors are starting to come to a more realistic outlook about the forward-looking growth prospects, as well as the power of central banks to pump up asset prices. Tyler Durden reports that:   It seems the warnings from PIMCO's Scott Mather that: "We have probably the riskiest credit market […]

TRADE WAR CONSUMER INFLATION DEAD AHEAD! Our expectations now are for a bounce in the US 10Y Note towards a potential right shoulder on a yield basis (SEE: SII - BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING). The unexpected reason for this will be inflation pressures, likely associated with: Tariff pressures on […]

CHINA CONSIDERING THREE TRADE WAR "TRUMP" CARDS Tyler Durden summarizes the Chinese media reporting on what options China has to play on the escalating US-China trade war situation:   Amid the escalating economic war between the US and China, discussions have intensified on how Beijing might stand up to the economic power of America, especially given […]

SII - BONDS AT CRITICAL TECHNICAL INFLECTION POINT WITH INFLATION PRESSURES LOOMING The Macro Analytics "Secondary" Indicators for the 10Y US Treasury illustrates that with the recent drop in yield we have achieved our target yield which we established last fall. Here is the current 10Y US Treasury for yield as measured by the "TNX": […]

IT INCREASINGLY IS ALL ABOUT GLOBAL DOLLAR LIQUIDITY Below are some charts & analysis from Nedbank's Mehul Daya, initially re-published by  WorldOutOfWhack.com then further annotated with comments by Tyler Durden. All support the work and analysis we have written about at MATASII concerning the out of control global unregulated influence of the EuroDollar System.   […]

IS UK'S "DEEP STATE" PLOTTING TO THWART BREXIT? The Brexit issue is one of the rich against the poor. The working class voted for Brexit. Shockingly, the Labor Party is now a weapon of the billionaires against the workers. The wealthy adore the EU because mass migration allows them to pay poverty wages to their workers. […]

TRADE WAR REALITY: A LONG TERM BIFURCATED GLOBAL "COLD WAR" ECONOMY The new long-term reality is an increasingly and deliberately bifurcated global economy! The US and its allies VERSUS China. If it sounds familiar – it should in terms of 1945-89. The West won the last Cold War on the same basis – and the […]

BREXIT PARTY IS DESTROYING THE UK POLITICAL ESTABLISHMENT "People feel completely betrayed, they feel abandoned, they feel even hated and despised by the political class and also by the media" This is clear statement of the situation in the UK before the upcoming EU elections.  Here is more detail   Since Nigel Farage officially launched […]

EUROPEAN ELECTION WILL AVOID THE ENSLAVING ISSUE OF DEBT Off-Guardian.org published the following article which we have put into a "net" bullet form. There message is simple: Across the EU, inequality is rising, corporations rule, and oligarchs impose their will, The European Parliament has no meaning as all important decisions are taken by the unelected […]

WORLD DOLLAR LIQUIDITY IS FALLING Here is a summary of Dr Lacy Hunt's work on the cause of the record rate of decline in World Liquidity.   The Second Theorem: Monetary deceleration eventually lead to lower, not higher, interest rates as originally theorized by Milton Friedman. When the Fed makes changes to the monetary base, […]