Officially Here: Negative U.S. Interest Rates

[Detroitgator]

The largest auction of 10 year Treasury Notes took place today. $32 Billion was met with almost insatiable demand and went off at an average of right at .70 or 70 basis points. To which it is now trading at 67 basis points after the close. Needless to say the thought has been that b/c the Treasury is having to auction a substantially larger amount of debt to fund the deficits, that demand would wane and rates would rise. Au contraire Mon Fraere. It appears that dealers and non dealers can;t get enough of US Debt, perhaps b/c the chatter to take rates negative is picking up steam. In fact I have read a few people saying the FED should take the overnite rate to as low as THREE (3) %. I can;t believe this in anyway would be good in real time. Sure on the surface some of the lower cost of debt arguments seem okay, but all I know is that any sovereign nation that has tried negative rates for a period of time, has discovered that is has not benefited them and have taken measures to extricate themselves from this policy. Regardless of how milquetoast the FED heads say they are opposed to negative rates, none of them say it with any conviction. I am quickly moving into the camp that negative rates are coming not only in the markets but also from the FED on purpose.

Yup.... and guess what's coming down the pike that you will neither like, nor believe, cuz it strays into Caribconspiracyville?

 

[FireFoley]

Yup.... and guess what's coming down the pike that you will neither like, nor believe, cuz it strays into Caribconspiracyville?

https://archive.org/download/neil-rogers-show-soundboard/Absolutely-Correct-Sir.mp3

I am turning my attention to the G&G strategy. No not the Gene and Georgetti's Steakhouse in Chicago (that's for you @Windy City Gator ) but the Gold and Guns strategy. Gold for the obvious reason but Guns for the Civil War that is approaching. Just wait until the Government extends the payments to the masses whether it is $1200 or $2000 monthly, to get us "thru the Kung Flu pandemic", and then suddenly takes them away. Have they considered what will happen when they try to stop those government handouts? I think not, hence the Guns.

 

[Detroitgator]

https://archive.org/download/neil-rogers-show-soundboard/Absolutely-Correct-Sir.mp3

I am turning my attention to the G&G strategy. No not the Gene and Georgetti's Steakhouse in Chicago (that's for you @Windy City Gator ) but the Gold and Guns strategy. Gold for the obvious reason but Guns for the Civil War that is approaching. Just wait until the Government extends the payments to the masses whether it is $1200 or $2000 monthly, to get us "thru the Kung Flu pandemic", and then suddenly takes them away. Have they considered what will happen when they try to stop those government handouts? I think not, hence the Guns.

Just my two bits, based on going through this after the last crash and underestimating how long the Fed can prolong things...

I have my G&G, so sure, buy a LITTLE bit now, but if this is where we are going, in the near term, you'd be a MORON to NOT go almost "all in" on the market, because we will have a melt UP here soon, like parabolic. Then ya cash out.

 

[Detroitgator]

https://archive.org/download/neil-rogers-show-soundboard/Absolutely-Correct-Sir.mp3

I am turning my attention to the G&G strategy. No not the Gene and Georgetti's Steakhouse in Chicago (that's for you @Windy City Gator ) but the Gold and Guns strategy. Gold for the obvious reason but Guns for the Civil War that is approaching. Just wait until the Government extends the payments to the masses whether it is $1200 or $2000 monthly, to get us "thru the Kung Flu pandemic", and then suddenly takes them away. Have they considered what will happen when they try to stop those government handouts? I think not, hence the Guns.

One more thing... much like the BS "back and forth" between Trump and the Fed over the rate cuts, I think we are seeing the same charade with NIRP... it's BS "arguing", but it will happen. All part of the charade.

 

[FireFoley]

One more thing... much like the BS "back and forth" between Trump and the Fed over the rate cuts, I think we are seeing the same charade with NIRP... it's BS "arguing", but it will happen. All part of the charade.

Interesting that this was the last post in this thread and quite apropos. I just read that the Taiwan 10yr Gov. paper hit an all time low of 42 basis points. This coming from the country who is lauded for handling the Kung Flu the best and whose economy is recovering. Well 42 basis points does not sound like recovery to me and Gold and Guns seem to be the play. StagFlation seems to be the outcome of this Centralized recipe, with a lot of "Stag" and a decent dose of "flation".

 

[Detroitgator]

Interesting that this was the last post in this thread and quite apropos. I just read that the Taiwan 10yr Gov. paper hit an all time low of 42 basis points. This coming from the country who is lauded for handling the Kung Flu the best and whose economy is recovering. Well 42 basis points does not sound like recovery to me and Gold and Guns seem to be the play. StagFlation seems to be the outcome of this Centralized recipe, with a lot of "Stag" and a decent dose of "flation".

On the "guns" front, for ammunition, there will be a massive shortage until at least 2022. With the run on sales in general, combined with international Covid supply chain shutdowns, manufacturers are out or running out of brass casings and small primers, powder they still have.

 

[FireFoley]

Perhaps coming to a theatre near you in 3, 2, 1...........................

UPDATE 2-Germany sells new 30-year bond with negative yield

LONDON/BERLIN Aug 21 (Reuters) - Germany sold 30-year bonds with a negative yield for the first time at an auction on Wednesday, a milestone for a fixed-income market where the entire curve now yields less than zero.

The euro zone’s benchmark bond issuer sold 824 million euros of the new long-dated bonds against a target of 2 billion euros, with an average yield of -0.11%. The coupon on the bond was set at 0% earlier this week.

 

[no1g8r]

Perhaps coming to a theatre near you in 3, 2, 1...........................

UPDATE 2-Germany sells new 30-year bond with negative yield

LONDON/BERLIN Aug 21 (Reuters) - Germany sold 30-year bonds with a negative yield for the first time at an auction on Wednesday, a milestone for a fixed-income market where the entire curve now yields less than zero.

The euro zone’s benchmark bond issuer sold 824 million euros of the new long-dated bonds against a target of 2 billion euros, with an average yield of -0.11%. The coupon on the bond was set at 0% earlier this week.

How does that even make sense? It's saying, "here, hold my money for me, and while you're at it, keep a little for yourself." What am I missing here?

 

[FireFoley]

How does that even make sense? It's saying, "here, hold my money for me, and while you're at it, keep a little for yourself." What am I missing here?

The house always wins, LOL.

 

[GatorCatsi]

 

[FireFoley]

Perhaps coming to a theatre near you in 3, 2, 1...........................

UPDATE 2-Germany sells new 30-year bond with negative yield

LONDON/BERLIN Aug 21 (Reuters) - Germany sold 30-year bonds with a negative yield for the first time at an auction on Wednesday, a milestone for a fixed-income market where the entire curve now yields less than zero.

The euro zone’s benchmark bond issuer sold 824 million euros of the new long-dated bonds against a target of 2 billion euros, with an average yield of -0.11%. The coupon on the bond was set at 0% earlier this week.

I posted the above in mid August, but last week when the U.S. Treasury rates had a "mini" spike ( And I do mean mini), the 10 yr, almost hit .80% (I know, LOL), so I starated looking at the rates in the Euro Zone. Well the German 10yr Bund had been steadyish around NEGATIVE 1/2%. Well the German Bunds have been screaming and the 10yr is now NEGATIVE .62% and the 30yr. is NEGATIVE .22%. So the "idiots" who purchased the 30yr -.11% in August are making money, LOL