Wild curve

US Treasury Bonds, Futures, and Proxy ETFs (TLT, TBT...)

Wild curve

Postby michael » Fri Jun 05, 2009 8:12 am

ZT -'140
ZF -'242
ZN -'305
ZB -'190

Particularly, look at the 5 and 2 year get beaten up. Flattening day.

Feds funds curve is agreeing with the two year move.
zq.jpg
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michael
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Re: Wild curve

Postby Martinghoul » Fri Jun 05, 2009 11:33 am

Blame Lockhart... Well, him and the fact that everyone in the mkt was the same way.
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Re: Wild curve

Postby michael » Fri Jun 05, 2009 12:24 pm

Who is he kidding (on tightening sooner)? I guess the massive backlog of foreclosures with mortgage rates shooting up past 6% is a non issue.

Fed funds does not matter. Besides prime rate indexed borrowers, no one (besides banks) is borrowing anywhere near Fed funds. This is a symptom there's not enough money in the system to make the monetary policy as effective as it could be.
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Re: Wild curve

Postby Martinghoul » Mon Jun 08, 2009 1:44 am

This is all about positioning, rather than fundamentals...
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