• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 44 mins Trump to Make Allies Pay More to Host US Bases
  • 12 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 15 hours THE DEATH OF FOSSIL FUEL MARKETS
  • 8 hours Solar to Become World's Largest Power Source by 2050
  • 21 hours US-backed coup in Venezuela not so smooth
  • 23 hours Can OPEC CUT PRODUCTION FOREVER?
  • 20 hours Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 2 days Will Trump Cave Again
  • 2 days European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 1 day War on Emissions Gains Traction
  • 13 hours Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation
  • 2 hours Biomass, Ethanol No Longer Green
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




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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