We're Heading Toward A Frightening Fall/Winter Economic Collapse

It’s all about rates this largely newsless morning, which have continued their march wider all night, and moments ago rose to 2.873% – a fresh 2 year wide and meaning that neither Gross, nor the bond market, is nowhere near tweeted out. As DB confirms, US treasuries are front and center of mind at the moment…. the 10yr UST yield is up another 4bp at a fresh two year high of 2.87% in Tokyo trading, adding to last week’s 20bp selloff. As it currently stands, 10yr yields are up by more than 120bp from the YTD lows in early May and more than 80bp higher since Bernanke’s now infamous JEC testimony. We should also note that the recent US rates selloff has been accompanied by a rapid steepening in the rate curve. Indeed, the 2s/10s curve is at a 2 year high of 250bp and the 2s/30s and 2s/5s are also at close to their highest level in two years.

http://www.zerohedge.com/news/2013-08-19/10-year-bond-shakedown-continues-rate-hits-2873

http://www.marketwatch.com/story/us-treasurys-slide-10-year-yield-above-286-2013-08-19?dist=beforebell

US 10Y Bond rates: 4% by December: SHTF

http://www.zerohedge.com/news/2013-06-24/meanwhile-10-year

Commodities: Egyptian bloodbath threatens crucial routes for oil and gas supplies

http://www.telegraph.co.uk/finance/commodities/10251219/Commodities-Egyptian-bloodbath-threatens-crucial-routes-for-oil-and-gas-supplies.html

Retail Expert Davidowitz: Wal-Mart’s Woes Stem From Economy in ‘State of Collapse’

http://www.moneynews.com/newswidget/Wal-Mart-Davidowitz-economy-jobs/2013/08/15/id/520624

New Mortgage applications are tanking

http://blog.kimblechartingsolutions.com/2013/08/new-mortgage-applications-are-tanking-due-to-rising-rates/

Repo Market Decline Raises Alarm as Regulation Strains Debt

Regulations aimed at reducing the risk of another financial crisis are starting to upend a key part of the bond market that expedites trading in everything from Treasuries to junk bonds.

The U.S. repurchase, or repo, market where banks and investors borrow and lend Treasuries and other fixed-income securities shrunk to $4.6 trillion daily outstanding last month, down 35 percent from a peak of $7.02 trillion in the first quarter of 2008, based on Federal Reserve data compiled from its 21 primary dealers.

http://mobile.bloomberg.com/news/2013-08-19/repo-market-decline-raises-alarm-as-regulation-strains-debt-1-.html

Read more at http://investmentwatchblog.com