Corporate Bonds Selloff w/Treasuries

• Above chart represents the 10yr treasury yield (black) and Investment Grade Bonds (LQD) blue. As the treasury yields spike, then corporate bond prices will fall along with treasury prices. Many banks and insurance companies hold large amount of investment grade debt. If these bonds start to fall in price, they too will need to be marked to market. The government will do everything in their power to hold up the treasury market, as it does offer support for the corporate bond market.

• Above chart - 3d 10m - offers an inside view as to what happened in the corporate bond market (lqd) when the treasury market fell apart this afternoon. You can see the weakness in the corporate market.
  

• FAZ 9above) moved higher, on volume, as the bond market started to selloff.