us treasuries showing bullish movement 4shares

Hey Guys

We need to stay focused on what is happening on the ASX and other markets to make sure we take advantage of future movements in Stock Markets.

The US Treasury 10 Year Bond Yield is a good indicator to show where the large investors are placing their money.

We are talking hundreds of billions of dollars in super/hedge/sovereign and hedge funds!

Between July 2011 and January 2012, there was a fear in the global economy that there could have been a collapse in multiple European Banks, causing possibly the next depression, because of a Greek Hard Default.

What was happening was Germany was putting the pressure on Greece to abide by strict austerity measures to ensure long term fiscal balance or even surplus, in return for German/Dutch/Belgian bailout number II.

During this period, we saw a flight to safe assets like cash and demand for US Treasuries rise significantly.

Lifting the price of US Treasury Bonds and dropping their Yields as we can see below to less than 2%.

Now that the ECB has printed 1Trillion Euros and Greece has been given the bailout, confidence is rising in markets and the big investment houses are selling out of US Bonds, decreasing their demand and their price, and lifting the Yields towards 2%.

We need to keep an eye on these yields, as they rise above this level in coming weeks/months, we will see this cash flowing into soft/hard commodities, precious metals and stock markets around the world.

And we are talking serious $$$ here flowing back into markets including the ASX.

Again this is my opinion DYOR.

Cheers Nectar