Editor's Note: The following are Buzz & Banter posts written on Wednesday, June 6, 2007 by Bennet Sedacca, looking at a few countries' government bonds. It is being reproduced for the benefit of the Minyanville community.


Now this is a top... - 9:33 AM

Tuesday, I highlighted the break in Canadian Government bonds.

But get a load of the chart below of the last 22 years of action in Japanese bond futures. Now that's a big top building. Note that yields peaked/prices bottomed as the bubble in Japanese equities ended in 1989.


Click to see larger image

That is one ugly chart. Over the next few days, I will be focusing on other countries as well.

It surely seems that the correlation in markets isn't only in equities. It exists across the board.

Same deal with credit spreads IMO. When they blow, it'll be a doozy.

And this guy won't be near it.

FWIW, I still think utes and REIT's and homies are a 'sell strength' story.


Bund alert!!! - 10:03 AM

As promised, please find below a log chart of German Bund futures.


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The 'coordination station' trade is really on.

I would take notice if these break along with a breach of 5% in 10's.

I would also note the drubbing in utes and REIT's. I think the bounce in those is over.


The rain in Spain... - 10:43 AM
Another one bites the dust
Another one bites the dust
And another one gone, and another one gone
Another one bites the dust
Hey, I'm gonna get you too
Another one bites the dust
--Queen

This is the last one for the day as it will become redundant and useless. Let's just say that there may be (likely) a global bear market in bonds developing. See the chart of Spanish Government futes...Yuk.


Click to see larger image

The rain in Spain is NOT falling gently on the Plain...By George I've got it!