Tuesday's Trade

Tuesday's trade was accompanied by the noticeable absence of any results on the U.S. 30-year treasury bond auction. I am hearing and seeing a lot of MSM static over how badly European bond markets are doing, and how U.S. treasuries are safe. At one point, I even overheard on a radio programme while loading up grocery items on how Canadians should be paying more attention to the European financial crisis.

But when you look at bond market auction failures, they are all in the long dated treasuries, resulting in a rise in rates at the long end. No doubt this will result in protracted propaganda in the press on how long term bonds are safe, even as the banks wholly abandon the trade. There have been long term bond market auction failures a-plenty around the world, the U.S. and Canada are no exception to the rule.

No technical indication on any rally in the stock.

supersize: http://www.flickr.com/photos/11747277@N07/6467926697/sizes/l/in/photostream/

stockcharts.com

-F6