Treasury Fat Finger?

Submitted by Tyler Durden on 01/18/2011 10:59 -0500

Today, just after the TIC data was released, there was a major sell off in the 10 Year. While some attribute the move to the disclosure which Zero Hedge pointed out first that China had sold $11 billion in Treasurys in November, this should not come as a surprise: we have been claiming for months now that the primary goal of QE 2 is just as much to push stocks higher as it is to replace China as a marginal buyer of Treasurys (although China could easily be buying bonds through the UK - truth is until Ron Paul asks Tim Geithner we won't know). And while this could certainly be a factor, the latest rumor is that there was in fact a Tradeweb fat finger, with some novice (and now recently unemployed) trader putting in a sell order for $6 billion instead of $6 million. The result is presented below. Of course, if we were a sellside advisory we would say nevermind the facts, the reality, and the market manipulation, and just buy the dip. Nevermind that market liquidity across every asset class today is non-existent, and as Citi results demonstrated there has been a complete and utter collapse in trading in the last quarter. Alas, ongoing manipulation whose sole purpose is to fool the greater fools back into the market, is failing, meaning the close loop will continue a little longer... until Chaos theory confirms that not even Ben Bernanke can hold an infinitely multivariable equation together.

Tradeweb Denies Fat Finger Rumors

Sudan Next To Succumb To Bernanke's Inflationary Experiment, As Country Threatens Revolution Over Surging Food Prices

 

African Food Riots Spread To Persian Gulf As Oman Is Next; Adverse Implications For Oil Prices?

 

Rosenberg On The Probability Of Another QE Round

The Case Against Treasury Bonds

Hinde Capital On How Pervasive "Realism Driven" Fear Is Paralyzing Rational Thought And "Keeping Us Awake At Night"

 

NAHB Builder Confidence Unchanged At 16, Misses Consensus Of 17

 

November TIC Data Update: China Treasury Holdings Decline By $11.2 Billion

 

Guest Post: Disinformation Fog Intensifies As Economic Turmoil Develops