The Bank of England's
Andrew Haldane is not a man to mince his words
- but perhaps the... excess truthiness.... in his latest testimony to British MPs
- may have many questioning his ability as a central-banker
(unable to lie when it is required).
Quote
"Let's be clear.
- We've intentionally .....blown the biggest.... government bond bubble... in history,"
Haldane said.
- "We need to be vigilant to the consequences..... of that bubble
- deflating more quickly....... than [we] might otherwise have wanted."
Unquote !!!!
He also described
- bond markets as .......the main risk to financial stability.
"If I were to single out what for me would be biggest risk to global financial stability right now .....
- it would be ....a disorderly reversion in the yields.... of government bonds - globally."
he said.
- There had been "shades of that"..... in recent weeks
- as government bond yields have edged higher
http://www.guardian.co.uk/business/2013/jun/12/bond-bubble-threatens-financial-system
In 2006, 2007, 2008 and 2009 we saw 10Y bond yields surge into June only to peak and..... turn lower aggressively;
- and in 2010, 2011 and 2012 we saw a 'mini rally' in yields into June that was not sustained,
- so, as Citi FX's Tom Fitzpatrick notes, while we regularly hear the mantra for the Equity market of "Sell in May and go away"
- maybe we should have one for the Bond market
- "Buy in June after the swoon."
Tho' the Japanese may have wished they heeded the "sell in May" mantra
There's blood in the streets - Where's Buffet ?
Levered carry traders are rapidly realizing...... large crowds and small doors don't mix,
- even though if they liked the Nikkei at 16,000 they should love it at 12,700.
It appears only physical metals traders are those
- who actually dollar cost average lower, when assets are more affordable.
Either way, in Japan:
JAPAN'S NIKKEI 225 FALLS 20% FROM MAY 22 HIGH
zh
With most metals sentiment - all predominantly..... "on one side of the market"
Perhaps they ought to note... the effect above
- re "large crowds & ....small doors"