The last time US 10Y yields were this far above sp500 dividend yields was sept/oct 2007 (BNP Paribas funds liquidate, Fed slashes rates, market peaks...)
Source: Bloomberg, www.zerohedge.com
This is not the price chart of a meme stock going under or a "pump and dump" altcoin
This is the Austria AA+ 100 year bond being hammered by the rise of bond yields... The price of the 100 year Austrian government bond has plunged near all-time lows and is trading 72% below its All-Time-High. Source: Bloomberg, HolgerZ
US real yields are at a 14-year high
Source: BofA
This is the largest short position ever in the US Treasuries 2 year note
Source: ISI chart
Bonds and stocks are tanking together... Are Chinese banks selling US Treasuries to 'fund' their yuan intervention?
Source: Bloomberg, www.zerohedge.com
An horrible 20-year JGB auction today tailed the most since 1987, showing that investors require a higher yield to buy JGB
Rising JGB yields threaten bonds worldwide, so we see EU and US sovereign yields accelerating their rise this morning. Source: Althea Spinozzi aka "The Bond girl"
A tricky time for US government bonds...
US Treasuries are facing multiple headwinds - economic strength (Atlanta Fed's real-time GDP growth forecast is tracking close to 4% for the third quarter), an uptick in energy prices and FED QT. But another headwind is fading demand stemming from historical buyers of US Treasuries: 1- China US Treasury holdings just hit a 14-year low at less than $850bn 2- Saudi Arabia’s stockpile of US Treasuries fell to the lowest level in more than six year (less than $100B) 3 - As Japanese long-term yields rose (due to a tweak in their #monetarypolicy), the largest foreign holders of US Treasuries, Japanese investors, became less interested in US bonds and asked for a premium. Source cartoon: GISreportonline
As highlighted by Caleb Franzen, the relative chart of SP500 / M2 money supply is trading at the exact same level as July 2007
This range also coincided with market peaks in: • Feb.'20 • Q4'21 While the S&P 500 itself has gained +181% in the past 16 years, $SPX/M2 has made no progress. Should this be seen as a logical resistance zone?
