Socio-Economics History Blog

Socio-Economics History Blog

UPDATE 12:38 PM EDT — IT’S GETTING WORSE — Something SERIOUS is Happening in US Treasury Bond Markets

by mosesman

  • UPDATE 12:38 PM EDT — IT’S GETTING WORSE — Something SERIOUS is Happening in US Treasury Bond Markets
    by https://halturnerradioshow.com/
    Something very peculiar – and VERY serious – is happening in US Treasury Bond markets.  The Yields on the 2-year, the 5-year, the 20-year, and the 30-year Bonds have experienced sudden and dramatic 40bps spikes several times today.
    The charts show the peculiar activity:
    It began very early this morning in the 2-year Bond Market:
    …
    That is a massive, violent spike in the US Government 2-Year Yield. Looking at the chart in image, the yield rocketed from approximately 3.91% to over 4.30% in an incredibly short window before snapping back down. Usually, a vertical line like that in image above is triggered by one of three things:

    1. Shocking Economic Data: If an inflation report (CPI) or employment data came in significantly hotter than expected, the market would immediately price in higher rates for longer.
    2. A Liquidity Event: A massive sell-off of bond futures that cleared out the order book because there weren’t enough buyers at those levels.
    3. Algorithmic Feedback Loop: Once a key technical level is broken, high-frequency trading bots can trigger a cascade of sell orders, causing the price to teleport to the next available level.

    When the 2-year yield spikes like this, it sends shockwaves through stock markets, US Dollar and the borrowing costs.
    …
    Then REAL trouble-signals started flashing in ALL the US Treasury Bond Markets; 2 year, 5-year, 20-year, and 30 year:
    –
    read more.

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