The 10 year yield is waiting like dynamite with fuse lit, ready to blow the top off. 10 year yield are holding at 3.6% and any clean break of 3.7% will see 5.3% as the next target literally killing the recovery and taking down equities with it for the next 10 years.

These flows occurred as the yield on 10-year notes jumped from a low of 2.46 per cent to a high of 2.96 per cent during the first half of November. With Treasury yields having recently stabilised – the 10-year note is around 3.40 per cent, down from a high of 3.56 per cent in mid-December – it remains to be seen whether official sales of US government debt continued late last year and into 2011.

The ultimate in market failure is upon as the much feared collapse of the 100 trillion bond market is now upon us.

Source: http://dawnwires.com/investment-news/china-russia...

By Justin John

http://dawnwires.com

Justin John writes for DawnWires.com and is a Director at a European Hedge Fund.

© 2010 Copyright Justin John - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.