Minimize

Welcome!

Long-End Yields Rising In Europe, Japan, and the US

Cory
July 6, 2017

Over the past 2 weeks we have seen a change in direction of long-term yields. the German Bund is more than double it’s level from 2 weeks ago, the UK 10 year Gilt is at a 5 month high, Spain and french yields are at 6.5 and 7.5 week highs respectively, and the Japanese 10 year is at the highest level in 5 months. Yes the actual percentage amounts are still very low but its the change in direction that matters.

Chris Temple and I discuss this new trend and assess how the central banks are playing a pivotal roll.

Click here to visit Chris’s website for more great market commentary.

Click download link to listen on this device: Download Show

Discussion
6 Comments
    Jul 06, 2017 06:55 AM

    Imagine reading above “its the change in direction that matters” exactly!!!…vs any opinion

    Chris read your bio off your site if it weren’t for the footprint of money flows off the daily charts even chart traders would have been caught on the wrong side of Volckers agressive action, yet those that traded off chart flows made great gains.You obviously understand the massive flaw in the buy side template so many in the industry push being burnt by it early in your career …..Sprott is a great example of the buy only side template.

    What happened to all the so called experts who were pumping QE 4-5-6 and they will never back off QE and never sell off the balance sheet…lol…inflation and gold to the moon.

    Steve Angelo, question for this doom and gloom pumper what did gold and silver and the miners do during the US financial crisis….hmmm…forgot that fact well here are the facts Gold fell 30% Silver fell 55% the HUI fell 65% while the US$ rose 24 cents….yup pm’s provide a great safe haven…lol

    OK trolls earn your money and spin your BS

      Jul 06, 2017 06:54 AM

      We trolls have decided to have a day off. Sorry for your dissapointment.

        Jul 06, 2017 06:09 PM

        I took the day off here in Florida, went trolling for billfish….Big Owl paid for the trip, or at least I put it on his account.

      Jul 06, 2017 06:06 PM

      Now compare the action in gold and the Dow during the crash of 1987:

      http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&st=1987-03-06&en=1988-01-01&id=p15171770645

      A bear market in stocks would be very good for the gold sector right now but a crash would likely cause at least some pain – particularly in the miners. However, what you have obviously not accounted for is the fact that gold, gold miners were at multi year cyclical bull market highs in 2008 right along with conventional stocks. In addition, the dollar was at an all-time low. In other words, net investor positioning had become very lopsided. That is, everyone, smart and dumb money alike, had plenty to sell in the gold space when those margin calls came. Everyone was also short the dollar whether literally or not.

      The situation is clearly not the same today. The gold space is hated by all but a few while stocks and the dollar are loved and not far from multi year highs – a record high for stocks.

      So, a crash would likely cause some selling due to the vast number of people who would act on their misinformed biases (that’s you), but the damage would likely be brief and far less than what we had in 2008. Smart money would be very aggressive buyers.

      That being said, I doubt that there will be such a crash. Way too many people expect one and are already positioned for it. In addition, we are unlikely to see the a 2008 type of liquidity crunch.

        Jul 06, 2017 06:22 PM

        Matthew….You horrid troll, you’r supposed to be having the day off.

          Jul 06, 2017 06:43 PM

          Sorry, I’m off now!