10 Year Note YieldPrice is moving in a well-defined channel on the Shorter duration.
The DX remains stubbornly over 94, a level that appears to be acting
as Support for now.
A pause that refreshes, one that TLT is attempting to make sense of
in its way to 139.
TLT tracks a market-weighted index of debt issued by the US Treasury
with remaining maturities of 20 years or more out to 30 years.
What remains a clear divergence is the weighting to the Mid-Point
of the UST Curve.
TLT is sickly as ZB underperforms ZN to the downside, it holds up better
in a SELL due to duration.
This divergence has been growing for some time and provided a clear
indication all is not well in the Land of Wood Paneling.
A veneer so thin, you can see through it... if you are paying attention.
Fortunately, most do not, the tendency towards swilling the "conventional wisdom"
satisfies their cleft palates.
Repeated Pies in the face, a welcome event as Purchasing Power Parity continues
to decline. The Market is raising rates out the Curve in defiance of YCC.
The thinking is... you're borrowing insane amounts of Debt and we are collecting
Chicken Scratch... you'll need to pay us more.
You may control the Short end of the Curve, but out here... all you can do is offload
your accumulated Debt on your balance sheet to feed us - xoxo 007
Reverse Repurchases increased 60% in 30 Days to $1.621 Trillion.
60% in 30 days.
Yeah, naw, that is not going to work much longer - the revolt has simply just begun.
