Our new section, "Members' Corner," is ready to host your thoughts, comments, and articles for discussion with your friends at PSW. All topics welcome (and you don't have to be The Nattering Naybob to contribute). Please send your submissions to me at "ilenecapsw" at gmail. ~ Ilene
Courtesy of The Nattering Naybob
By now those rogue bond traders should know the power of the dark side and all the carnage which that widow makers trade has left in its wake. Just chart any duration going back to only 2008 to see the tip of that iceberg or ask anyone short on 10 yr JGB in the last 30 years.
Someone thinks the bond bubble is going to burst? That would be nice, however, when the cacophony from the idiots at the Fed warns as such, which it is, it's a damn good bet we have not yet hit the apogee.
This tells one everything they need to know about the anticipated future cost of both short and long duration wholesale loan funds, which is what keeps the system greased and wheels turning, and the economic expectations consideration contained therein.
Upon further review, as indicated by the concomitant rise in US Dollar Libor, Negative Swap Spreads and US Bond Yields, is there something nasty lurking in the woodshed? More to come tomorrow.