Wild Bond Action Took Place Yesterday (02/09/2016)

There was a big surge into Treasury bonds yesterday while corporate junk bonds were sold off.

Fed Fund futures now predict no rate hikes from the Fed in 2016.

Stock market bubble bulls trying to buy bottom guess in desperation are ignoring the tells in the bond market.


There is now $7 trillion of government debt with yields below zero globally, with the average yield on the Bank of America Merrill Lynch World Sovereign Bond Index at 1.29 percent, the least in data that go back to 2005.

“It’s almost like a panic,” said Hideo Shimomura, the chief fund investor in Tokyo at Mitsubishi UFJ Kokusai Asset Management. “The flight to quality is exaggerated.”

Full story here.

Bubble bulls just hold in hope.

They ignored valuations last year and now this year ignore market trends.

But yesterday the Nasdaq gapped down below a support level going back to the Fall of 2014 and closed below it.

Take a look the charts here.

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