Thursday, October 27, 2011

Is the Treasury Bubble Popping as Gold and Silver Emerge as the REAL Safe Havens?

With all of the focus on gold and silver today following the bailout of Europe announced last night, lost in the commentary has been today's collapse in T-bonds.
The rate on the 10 year has soared 18 basis points (up 8.26%) today alone to 2.38.
Rates have now soared by 40% since The Fed announced operation twist a little over a month ago and rates collapsed to 1.7%.
This is a massive paradigm shift as previous similar crisis have resulted in a massive rush into the perceived safety of US treasuries.
Has the world suddenly come to the realization that the entire solution is

Today's collapse in t-bonds and coinciding massive rallies in gold and silver might just be looked back upon as the day that the biggest bubble of all time was finally pricked.
Got gold and silver??

CBOE Interest Rate 10-Year T-No

(Chicago Options: ^TNX )
Index Value:2.38
Trade Time:2:02PM EDT
Change:Up 0.18 (8.26%)
Prev Close:2.20
Day's Range:2.27 - 2.38
52wk Range:1.70 - 3.74