The Bond Market Crisis Isn’t Over Until Western Bonds Are Worthless
The Market Sniper Francis Hunt walked a pier in Kaliningrad and told viewers the debt based collapse he has been forecasting is already showing in the banks.
On Friday the major U.S. banks sold off hard, including the Fed’s bank, JP Morgan, Goldman Sachs, and Bank of America. Banks are the intermediaries. They create the product, move it, and hold a lot of it as assets. Bank of America alone bought five hundred billion in Treasuries when rates were around two percent. That collateral is no longer pristine.
“Banks are entirely affected by a major downturn in the perceived value and collateral of debt as an asset class. Asset class, he says. “It’s almost a gag.”
The walk back on bonds has been public. They started as entirely risk free, then pristine collateral, then buy bonds wear diamonds, then the cleanest of the dirty shirts, and now a real risk. The lie bends until it reaches the truth he has been saying from the start. It is over.
His HVF method has the ten year set up for further upside in yields, a target beyond six percent, with the potential for a blowoff that runs through an immense amount of numbers. The interim level two pause is just that, a pause. Outlier pace upside gets a pullback. Then the attack vector of people saying yields look quite good right here, shouldn’t we be buying. He expects the structure to resume.
“You’re going to get HVF structure and for which you will have a target beyond six percent being run with potential overperformance that could in a blowoff event take you well through an immense amount of numbers.”
An X profile called Treasury Bonds One appeared in June 2020, a handful of months before he called the top of the forty year bull market in bonds. During the glory years no one needed an account to sell Treasuries to retail. In the fortieth year they built one, leaning on stock market fear to pitch diversification into the thing that is rolling over. He is a pest about it. He follows the handle and answers.
Western bonds, in his map, are not done until they are worthless. The banks are the first place the loss shows up because they are the supply chain. The ten year is only pausing. The target is beyond six percent. The reset he has been trading is the one where the paper stops being the asset and the physical becomes the only thing left that holds value. That is the other side of the reset.
