Wake up muppets!!!!!!
Submitted by Tyler Durden on 04/11/2012 06:47 -0400
10 Year Treasury
Bond
CPI
Italy
Price Action
recovery
Risk Premium
Russell 2000
Yesterday we predicted it was imminent, and sure enough, adding insult to injury for any muppet who rode the "once in a lifetime" opportunity to buy stocks and sell bonds, Goldman just hit the stop loss on its 10 Year Treasury short, after getting stopped out in its Russell 2000 long two days prior.
Concerns over a slower pace of US and Chinese growth have compounded an escalation of tremors in the Euro area’s sovereign and banking space, with Spain this time at its epicentre. Dragged lower by the strong ‘flight-to-quality’ rally in their German counterparts, US 10-yr nominal government rates are back at 2% - a level below the central bank’s CPI inflation objective. Our tactical trade to be short 10-yr Note futures (TYM2), initiated on March 14 at 129-17 for a target of 126-00, hit last night the stop-loss at 131-16 (the position had reached a low of 127-23 on March 20). We are therefore recommending closing the position with a loss of around 2 points.
Looking ahead, we continue to forecast US bond yields heading higher. Our view is supported by our valuation work, suggesting that even on our macro forecasts calling for a modest recovery, and accounting for the Fed and BoE’s direct
http://www.zerohedge.com/news/goldman-stopped-out-10-year-treasury-short?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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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