Chuck Butler on the growing US Treasury Bubble

By @ibtimes on

blogFrom The Daily Pfennig today,  Mr. Chuck Butler, President of EverBank World Markets discussing the potential beginning of the end of the US Treasury Bubble. Your defense? Physical gold! Here's Chuck:

The 10-year U.S. Treasury continued to rise last week and is now at 3.45%... remember that on just November 10th, this bond's yield was 2.63%... (remember that when a bond's yield rises, the bond's price falls and vice versa when the bond's yield falls).  This move is a full 6 point fall in the price of the bond. If you owned $100,000 par of this bond, your loss right now would be $6,752! . Remember, a couple of weeks ago, when I said that I wasn't sure if this was the actually the beginning of the end of the Treasury Bubble, because we had seen a couple of head fakes before? Well. I'm becoming more convinced that this is the real deal with every passing day.

I agree with Chuck Butler! Chuck continued by saying that Quantitative Easing (the Federal Reserve coming in and buying back bonds to keep interest rates low) was not holding back the selling of Treasuries. Chuck always concludes that an investor should buy gold and silver as well! Go after the silver shorts! Here is exactly how he finishes the thought: This could get quite ugly folks... quite ugly...

Our phone number here at Lear Capital is (800)576-9355.

Join the Discussion