How The Government Will Pay For It
Long bonds are rallying vs. shorted-dated Treasury
futures: the T-bond
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are up only 5/32 and five-year notes
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108 0/32. Two factors are driving this flattening of the yield curve.
First is the government’s sale of $17 billion in two-year notes. The second
is a report circulating that the government will continue its year-long
campaign of paying off debt by buying back longer-dated issues. Taken
together, the action implies the government intends to pay for the
recent tragedy and airline crisis by issuing shorter-dated Treasuries.
T-bonds
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make good on their Pullback From Highs List.
From the Momentum-5
List, both
December gold
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silver
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before continuing higher. Silver is also a Pullback From Highs
candidate.
November crude oil
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from the
Implosion-5 List, made good on an
Off The Blocks
short and is correcting from a two-year low. As described yesterday, crude
is down sharply and is oversold and now has made an eight-day
plunge of as much as $9 a barrel.