$50 Trillion in Question as US Treasury Liquidity Dries Up

$50 Trillion in Question as US Treasury Liquidity Dries Up

“Treasuries are the risk-free benchmark that anchors the over-$50 trillion in global dollar-denominated fixed-income securities,” said Joshua Younger, head of U.S. interest rate derivatives strategy at JPMorgan Chase & Co.

“The level of volatility and lack of clarity in Treasuries makes it much harder to make sense of the value of all other assets,” added Younger, who has an astrophysics Ph.D. from Harvard University. “It can create a self-perpetuating flow of expectations that is not really reflective of financial markets and the true level of risk aversion.”

I'm not sure what this means, or how bad it really is.
I'm not very savvy about the stock market.
So, please go for it...explain it....as in Finance 101.

a reply to: DontTreadOnMe

Well I have been diligently watching all sectors. I've noticed a trend every 3-4 days that the Feds will pump the blue chip stocks full of money to give some false hope of an uptrend, but no matter what, it keeps going down.

It's like throwing money into a fire and hoping it will eventually extinguish. Lots of investors are pissed off about how the feds are trying to contain the market crash because it is clearly pointing to manipulation.. and that's what has been going on over the last couple of years across the sectors.

On the other hand, they are dropping interest rates like crazy. It's even happening in Canada to help stimulate the economy. I'm taking advantage of it.

As for the rest... Not sure. The government is well known for "misplacing" money and losing it.

It means that the show is over. Fraudulent system of currency is in peril.

I am not sure what this means either. I know quite a bit about the stockmarket and some of the governments actions to preserve the economy, but nothing about something like this. I just posted to let others I don't know anything about something like this. Some here might know about this, so I will try to keep an eye on what is being said.

originally posted by: DontTreadOnMe
$50 Trillion in Question as US Treasury Liquidity Dries Up

“Treasuries are the risk-free benchmark that anchors the over-$50 trillion in global dollar-denominated fixed-income securities,” said Joshua Younger, head of U.S. interest rate derivatives strategy at JPMorgan Chase & Co.

“The level of volatility and lack of clarity in Treasuries makes it much harder to make sense of the value of all other assets,” added Younger, who has an astrophysics Ph.D. from Harvard University. “It can create a self-perpetuating flow of expectations that is not really reflective of financial markets and the true level of risk aversion.”

I'm not sure what this means, or how bad it really is.
I'm not very savvy about the stock market.
So, please go for it...explain it....as in Finance 101.

Basically sellers can't sell and buyers can't buy... so no one knows where pricing should be. The Feds only real response is to step in and basically buy up the treasuries.

a reply to: DontTreadOnMe

I think it means there may be trouble in the Federal Government buying back Treasury Bonds in a timely manner.

Maybe tax refunds too?

a reply to: Edumakated

So, the stock market will flatten out?
Sounds like more than the "R" word.

a reply to: DontTreadOnMe

It's starting to look like the "C" word... collapse.

a reply to: burdman30ott6
Well, isn't that just peachy.

a reply to: DontTreadOnMe

No joke, I'm allergic to peaches... cause anaphalaxis. So yeah, it's real peachy.

a reply to: DontTreadOnMe

This may upset money managers, financial markets, guys in suits who have power lunches.

But for the regular folks?

You know, the unwashed heathens who populate the other 99% of the country?

It won't affect us much at all.

Unless someone wants to educate this simple-minded bumpkin differently.

originally posted by: DontTreadOnMe
a reply to: Edumakated

So, the stock market will flatten out?
Sounds like more than the "R" word.

Who knows. Typically, bond yields move opposite of equities. So when stock market is crashing, bond are rallying because people want get out of risky stocks into less risky bonds. When bonds are in demand, it pushes the yield "rate the bond pays" down.... i.e., lower interest rates. The more people want bonds, the less you have to pay in yield/interest.

The bond market kind of fell apart on Monday after having huge rallies the prior week or so which drove yields down to record lows.

So you have both equities and bonds in turmoil right now.

Personally, I think one of the issues with our financial markets is too much AI is involved which is increasing volatility, and there is too much information available 24/7 to the public. I was talking to a colleague and we were saying how it used to be only professionals really knew what was going on in the markets. If you wanted to know the prices of a stock, you had to physically go look up the stock ticker page in the newspaper. Nowadays, everyone is literally monitoring their investmetns in real time day to day.

a reply to: DontTreadOnMe

I think it ALL means the elites DNC puppet politicians couldn't
get the job done. So now the real power is in play. I saw it
on the Presidents face last night.

astrophysics Ph.D.

I think it means someone is asking the wrong professionals. It's like going to a mechanic when you're having health problems.

bookmark. I'm hearing additional rumors that it's a another local hospital here where i'm at. (hour south of Chicago)

originally posted by: DontTreadOnMe
.So, please go for it...explain it....as in Finance 101.

We're gonna let politicians and their cronies loot the government for a while. You won't even miss those billions, trust us.

All I know is this:

Guy I live with is having his mother's (RIP) Disney stocks transferred to his name and selling them asap due to needs, unrelated to the coronavirus stock market drama.

In January until late February, they were around $140 a share. I've been watching them go down more and more, below $120, then below $110, and as of today 3/12/20, the value is $91.81.

He has 23 shares or so. It went from $3,220 to $2,116.

What’s the chance that another housing bubble pops? Every time I’ve tried to buy a house this year, some real estate company sweeps in before me. Has happened 3 times in a row now. Seems it might be smart to let this all settle and then start another search.

originally posted by: Blue Shift

originally posted by: DontTreadOnMe
.So, please go for it...explain it....as in Finance 101.

We're gonna let politicians and their cronies loot the government for a while. You won't even miss those billions, trust us.

It's what they've been doing for fifty years. The cookie jar is almost empty.