- I am also watching the US 10Y bond yield surge 9.6pts to 3.793% . To support their currencies both UK & Japan must sell USD and buy their own currency (ie Pound/Yen). What do they have that they can/will sell?? US Govt. bonds. So it is building towards: Global Currency Crisis and Sovereign Bond Collapse. The Global Financial Market may lock up and not open should things continue as they are.
- Feast of Trumpets is 25-27 September 2022. We are on target for another financial collapse which always seem to happen around this Biblical Feast. Ie. It is all PLANNED.
- Pound Flash Crashes 500 pips To Record Low Amid Global FX Carnage As Things Start Breaking
by Tyler Durden, https://www.zerohedge.com/
Just as last week ended, with a relentless meltup in the exponentially rising US dollar, coupled with a collapse in cable, the yen, yuan, euro and so on, not to mention stocks and bonds, so the new week begins only this time the moves are even faster, even more brutal and even more acute, as we approach the breaking point.
Case in point, after starting modestly higher, the meltup in the dollar accelerated, as the Bloomberg dollar index exploded to new all time highs… … and is forcing Kuroda to sell even more tens of billions of US Treasurys, to cash into USDs which he will then sell for yen, in the process pushing up 10Y yields even higher, creating a toxic feedback loop of higher yields and an even higher dollar, sending yields higher and the dollar even higher.
But the imminent conclusion of Japan’s MMT experiment notwithstanding, the real highlight of the session so far has been the total collapse in sterling, whose implosion after Friday’s mini budget has accelerated and moments ago cable flash crashed to a new all time low of 1.0350, below the previous record low set in early 1985, and just millimeters away from parity as every single stop was taking out to the downside. .