Margin on Treasuries
Started by
Islander
, Jul 27 2011 12:18 PM
4 replies to this topic
#1
Posted 27 July 2011 - 12:18 PM
We got a satellite feed saying the Chi Merc had refused 100% margin on US Treasuries.
This is a major signal of sentiment regarding credit worthiness of US Paper, and the chaos awaiting this market.
We are giving up on vacation and coming back to port: vacation over.
I also saw major selling in sliver this morning by a hedge fund whale in the US market. Is the earth moving?
Best, Islander
#3
Posted 27 July 2011 - 02:49 PM
Who knows what's going on with this? But treasuries prices themselves remain very calm for the time being. Big pensions funds, hedge funds, banks, sovereign wealth, etc, do not seem to be selling right now.
#4
Posted 27 July 2011 - 02:50 PM
Who knows what's going on with this? But treasuries prices themselves remain very calm for the time being. Big pensions funds, hedge funds, banks, sovereign wealth, etc, do not seem to be selling right now.
#5
Posted 27 July 2011 - 05:24 PM
Who knows what's going on with this? But treasuries prices themselves remain very calm for the time being. Big pensions funds, hedge funds, banks, sovereign wealth, etc, do not seem to be selling right now.
Well, the entire selling is happening in equities and it keeps the public debt stable for now and USD kind of bounced a little. The debt can become unstable if USD starts shooting down after a few days of equity sell off. You don't want that to happen.
Then the bonds may sell and then the equities can easily collapse 10-20% within a month. I am not betting on this scenario though. What I am trying to say is, if they start selling the bonds, it would be end of the equities, they have to crash.
Honestly, given that this is all happening after pumping up the stocks artificially with QE and now the rates are forced higher without any support under the equities whatsoever, I just do not understand how they don't crash here 10-15% within days.
The situation is extremely serious, imho.










