30 Year Treasury Sales Not Good

[BullBearGirl]

Spike in 30 year treasury yields today. TBT up in response.

[Steven Vincent]

Andrew Cardwell thinks that gold and the stock market are going to diverge and the dollar will go down after a brief bump up. He may be right.

[BullBearGirl]

You would think this would be HUGE news, but no one seems to be making anything of it that I can see. Maybe they figure quantitative easing will begin again if yields get too high. But will the Treasury be able to stop the bleeding if people start selling off their long term treasuries like crazy?

[BullBearGirl]

It didn't seem to have much of an impact on either the dollar or the stock markets today, which surprised me a bit. Maybe I missed something, though.

[BullBearGirl]

I'm not sure what it means for the dollar, either. I've heard two different opinions on it -some say dollar will go up and others say it will go down. All seem to agree stock market should go down as interest rates go up. I'd think that normally the dollar should go down with poor 20 year plus treasury sales, but since the dollar went down during the current run up in long term treasury prices/decrease in treasury yields during quantitative easing, I'd think the dollar would go up - at least for a while.

[Steven Vincent]

Not sure what this is telling us. When foreigners buy treasuries they return dollars to the treasury in exchange for the coupon, which is dollar bullish since it takes dollar supply off the market? Therefore poor treasuries sales are dollar bearish?

Treasuries are an area I don't work with much (yet).