Thanks for the summary John. Your daily reviews are always appreciated.
John notes that the Gold and Tip markets are reacting to inflation expectations. With this general tone, the pricing action on the long end of the treasury curve shows that the Fed is getting effective results in its previous commentary regarding future purchases for rate suppression. There does not seem to be evidence that the FED has started purchasing 30 year bonds. How long will the implication of future prices suppress the long bond rate?
Bond Expert: Friday Wrap [View article]
John notes that the Gold and Tip markets are reacting to inflation expectations. With this general tone, the pricing action on the long end of the treasury curve shows that the Fed is getting effective results in its previous commentary regarding future purchases for rate suppression. There does not seem to be evidence that the FED has started purchasing 30 year bonds. How long will the implication of future prices suppress the long bond rate?