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As Obama Says He Will Veto Any Republican "Cut, Cap" Deficit Bill, Long Bond "Dragged To Slaughter House"
Submitted by Tyler Durden on 07/18/2011 12:38 -0400
* 2s30s
* Across the Curve
* Debt Ceiling
* Flight to Safety
* Vigilantes
Just because someone is dead set on making Apple the only flight to safety in the world (and Gold of course, but unlike the iPad one can't really eat this particular tradition), around the time (10 minutes ago) Obama threatened he would veto the Republican proposed vote to raise the debt ceiling coupled with a cap on spending and balanced budget amendment to the constitution, the selling off spilled over to Treasurys, which as the chart below demonstrates are broadly lower across the curve, but most emphasized at the 30 Year spot, which as Russ Certo says (see below) is being "dragged to the slaughter house." Alas, judging by bank trading today the 2s30s steepening is completely irrelevant for bank stocks, for the simple reason that i) nobody needs any new mortgages and ii) nobody actually pays their mortgages. This is the second day since last week in which there is coordinated selling in stocks and bonds. Expect much more bond weakness with each day there is no bond deal.
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http://www.zerohedge.com/article/obama-says-he-will-veto-any-republican-cut-cap-deficit-bill-long-bond-dragged-slaughter-hous
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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