Huge supply weighing on 30 Year Treasury Bonds – Supply is weighing heavily on the U.S. Treasury market and yields across the spectrum moved up yesterday. This was especially noteworthy at the long end of the yield curve as the 30 year bond yield moved up to levels not seen since last November. – MORPH366 MUSINGS ON MARKETS, MEMES AND MAYHEM

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Will The UST Curve Steepen More? - Posted by Tyler Durden – An interesting correlation between 10 Yr US protection and the steepness of the 2s10s curve. The tight correlation completely broke in November and after reaching massive wides in March is now almost back to flat. Overshoot on either side likely? - Zero Hedge

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unintended consequences? – Repo Failure Remedy Drives Away Short-Sellers in Treasuries – By Liz Capo McCormick – … “Making short-selling potentially costly can reduce market liquidity,” said Darrell Duffie, a Stanford University finance professor and member of the New York Fed’s Financial Advisory Roundtable. “Financial markets with relatively unencumbered short-selling perform better.” … – Bloomberg

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30 Late Day Chartology – Tyler Durden – The next chart compares the 30 Yr UST with the 30 Yr FN current coupon (MTGEFNCL). Welcome to the bizzaro world of negative mortgage spreads: somehow a 30 year mortgage has become cheaper than US Sovereign debt…Maybe taxpayer subsidies into Fannie/Freddie have something to do with it? Hit tip to Dirk for the idea.  – Zero Hedge
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The Mind Of The Market – Susan Lee – The stress test results will test an old hypothesis. – For believers in EMH–the efficient market hypothesis–May 4 will be a fascinating day. That’s the release date for results from the Federal Reserve’s stress tests of 19 big banks. And subscribers to the theory that the stock market quickly–and mostly accurately–reflects new information in prices, are wondering how the market will react. Many are betting the reaction is going to be bizarre. – Forbes

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Chart of the Day – Many investors are looking to the early 1930s for some insight into the current economic/stock market environment…. more …