Five Year Treasury Notes Collapsing
The five year Treasury note has just experienced the biggest weekly percentage decrease in the last 20 years.
Here's a chart of the record via ZeroHedge:
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Important to note is that at the EPJ Daily Alert, I have been warning that the Treasury market would collapse, but that the stock market would climb. This forecast has prompted many emails from subscribers questioning how the two events could happen simultaneously. Well the events are occurring simultaneously. Despite a terrible week for Treasury securities, the stock market has been strong all week.
What's going on is a flight from the dollar, which is limiting Treasury purchases (especially out of China) and slowly developing price inflation fears, which is adding a inflation premium to interest rates. At the same time Fed money printing is fueling a climb in the stock market. At some point, I expect the interest rate climb to get out of control. Then what is Bernanke going to do?
Update: Dow Industrials surge 648 points--a gain of more than 5%-- over five-day winning stretch.
Here's a chart of the record via ZeroHedge:
What's going on is a flight from the dollar, which is limiting Treasury purchases (especially out of China) and slowly developing price inflation fears, which is adding a inflation premium to interest rates. At the same time Fed money printing is fueling a climb in the stock market. At some point, I expect the interest rate climb to get out of control. Then what is Bernanke going to do?
Update: Dow Industrials surge 648 points--a gain of more than 5%-- over five-day winning stretch.
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