• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 14 hours U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 4 hours Socialists want to exorcise the O&G demon by 2030
  • 6 hours Chevron to Boost Spend on Quick-Return Projects
  • 3 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 4 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 1 min Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 13 hours UK, Stay in EU, Says Tusk
  • 20 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 18 hours Maritime Act of 2020 and pending carbon tax effects
  • 5 hours Conspiracy - Theory versus Reality
  • 1 day Venezuela continues to sink in misery
  • 13 hours Regular Gas dropped to $2.21 per gallon today
  • 20 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
Alt Text

The Best Places In The World To Mine Bitcoin

As Chinese bitcoin miners face…

Alt Text

Stock Market Chaos Sparks Oil Selloff

Global markets took a beating…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The Bond Liquidation is On

Big jumps in yields on U.S. Treasury bonds over the past week.

Check out the one-year Treasury. Yields are up 30% since November 8. To their highest level since early August.

US Treasury Yield Rates - 1 year

The rise in yields has been across the board. The 10-year Treasury is up 15%. The 30-year has jumped 8.5%, to its highest level since May.

US Treasury Yield Rates - 10 year

US Treasury Yield Rates - 30 year

Here's the really interesting thing. At the same time as regular Treasuries yields have been rising, yields on inflation-protected securities have also gone up.

Look at the 10-year inflation-protected. Up nearly 100% since November 4.

US Treasury Yield Rates - 10 year Real

Inflation-protected yields have also had an across-the-board rise. The 5-year is up 90%. The 30-year is up 25%.

What does this mean? Rising yields indicate falling prices. Investors are selling off Treasuries of all types.

Why? It could be the lack of confidence in the American dollar that many analysts have been forecasting since the U.S. began printing money to bail out the financial system and the economy. Perhaps the announcement of "QE2" two weeks ago was the last straw for some Treasuries buyers, who are now moving money out of dollar-denominated investments.

Or it could be the opposite. Perhaps because of QE2, investors are predicting inflation ahead. Increased money supply is going to drive up prices of homes, stocks, commodities and other goods.

Investors who believe such would favor riskier investments over low-yielding Treasuries (even of the inflation-protected variety). Maybe this week's all-encompassing bond sell-off is a bet that QE2 is going to work.

By. Dave Forest of Notela Resources




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News