"...the selloff started about midway through the session with rumors swirling about the cash strapped Bank of Japan liquidating half their U.S. Treasury holdings. Prices on the Ten Year Note plunged taking yields up one hundred basis points over the span of about eight minutes. Record volume led one trader to speculate that the Central Banks of the U.K., Saudi Arabia and China were stepping in to halt the U.S. Bond collapse.
Yields seemed to level off for about a half hour but then the frantic selloff resumed driving Ten Year Treasury yields up another whopping one hundred and ninety basis points!" Observed a reporter in Australian accent.
"So what impact has this had on the currency markets?" asked the anchor. "Is everyone moving into cash?"
"Yes...well, the conventional wisdom is that such a dramatic move down in Treasuries would drive many investors into U.S. dollars but that has not been the case. There is a dollar selloff happening concurrently with the dollar down almost ten percent against the yen and euro and off a whopping fifteen percent against the Chinese yuan. These are all unprecedented moves, Sam."
"Where are the investors going?"
"Right...(nodding and holding earpiece)...well, it's been a huge day for metals, ag commodities, and oil with oil itself up almost twenty five dollars during the session.
"So what happens from here?"
"Yes...(nodding and holding earpiece)...well, with commodity futures still climbing and Treasuries still tanking, it looks like the bloodbath will continue when the DAX opens."
"Thank you, Mel...uh huh...one moment...(holding ear)...uh we've just received word that the Federal Reserve will be holding an emergency session in..."
- Author: Troy J. Grice
- Publication Date: 2010-09-29
- Publisher: CreateSpace Independent Publishing Platform
- Product Group: Book
- Manufacturer: CreateSpace Independent Publishing Platform
- Binding: Paperback, 240 pages
- Item Dimensions:
- Dimensions: 49L x 837W x 542H
- Weight: 62
- Package Dimensions:
- Dimensions: 850L x 551W x 71H
- Weight: 75
- List Price: $9.99
- ISBN: 1453846727
- ASIN: 1453846727