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The bond market is well ahead of the decline in TLT, and both will fill the gap that was entered over a year ago when bond markets rose on QE speculation.

QE is actually meant to raise interest rates, not keep them in check. Downward momentum in the bond markets is grossly overstated, although a complete rout can happen in this slow-as-molasses market.

GBN.V shares can be directly affected, because hedges in equity swaps against gold miners routinely use bonds. Securities traders have used equity swaps and derivatives against gold miners since as far back as the 1970's.

This is why the sell-side is so successful at shutting down prospects like the La Ronge Gold Belt.

A gold project in a known gold belt, with known geology, with mines that start at the surface, and a pre-feasibility study, a licensed and refurbished mill, ore stockpiles which have already been depreciated from earnings over three years, parliamentary assent for tailings management, good grade controls, a multitude of deposits of various sizes, no unions, working agreements with First Nations, in a province which depends on mining for its existence and have yet to table a resource over its extensive assets during a gold bull market should simply not be trading for pennies.

The risk assets that securities traders are trading for hundreds of millions of dollars in notional value, because of the decline in the share price of gold mining shares, are based on U.S. Treasuries which have since lost their 'AAA' status, thus making them ineligible for hedging, have no hard assets except a trading platform and black-scholes models to back them. They also have the Canadian government hell bent for leather to throw the resource economy under the bus because they're the bankers best buddy.

http://scharts.co/14IaQML

http://scharts.co/16NCMif

-F6