The Bond Market

[dalakhani]

...is getting THROTTLED.

[GPK]

Glad I'm aggresive

[dalakhani]

Its oversold now as the carnage continued throughout the rest of the day. The govt will start buying again...soon.

The bigger question is, what happens when the govt can no longer buy? I guess theoretically money can be printed to infiniti but there has to be a day of reckoning.

[gales0678]

Originally Posted by dalakhani

Its oversold now as the carnage continued throughout the rest of the day. The govt will start buying again...soon.

The bigger question is, what happens when the govt can no longer buy? I guess theoretically money can be printed to infiniti but there has to be a day of reckoning.

hyper-inflation like Brazil?

[dalakhani]

mbs, especially at the low coupons, took the worst single day beating in at least ten years or as far back as i can remember.

10 year treasury yields have gone up 100 bps in less than a week.

35 billion dollars was up for govt repurchase and they bought back 7 billion. What does that tell you?

Well, it is telling the markets that there is a limit to the government's buying. It also gives us sneak preview of what it will look like when the govt will stop buying. Not pretty.

I would imagine there were some unhedged positions that got absolutely destroyed today.

[Cannon Shell]

http://www.telegraph.co.uk/finance/f...ing-money.html

[ninetoone]

Looks like the old refi is on hold for now!!

[gales0678]

Originally Posted by dalakhani

mbs, especially at the low coupons, took the worst single day beating in at least ten years or as far back as i can remember.

10 year treasury yields have gone up 100 bps in less than a week.

35 billion dollars was up for govt repurchase and they bought back 7 billion. What does that tell you?

Well, it is telling the markets that there is a limit to the government's buying. It also gives us sneak preview of what it will look like when the govt will stop buying. Not pretty.

I would imagine there were some unhedged positions that got absolutely destroyed today.

dalakhani we are broke are we not? we just can't keep the printing presses running forever , at some point there will be a day of reckoninig, it will not be pretty , we will have a land of have's and not's - i think the middle is doomed , i hope i'm wrong