Gold Screaming On The 1-3-6 Rule

John Galt says,

Years ago a trader explained to me that if the 1 month, 3 month and 6 month Treasury yields dove towards zero and out of their “normal” range during a bull or bear market that there was a fear of a huge risk to the markets or other financial event occurring and that meant the big money as it is called, wanted to be in the safest of short term instruments that could be cashed out at maturity or sold on short notice to raise cash or return to the markets should it prove to be a non-event. Well, let us look at the history of this over the last three years and since the crisis began in February of 2007 when the first of the mid-sized mortgage finance companies started to collapse and a lot of us went “oh crap” and knew what was coming with this credit market implosion and eventual financial system collapse. Here is a 3 year chart of the 1 month Treasury continuous yield with notations.