SOMKID THONGDEE
We may be leaving the calm before the bond market storm, with turbulence likely in the weeks and months ahead. What could trigger the next big move? One powerful catalyst may be the US Treasury’s checking account at the Federal
In The Eye Of The Bond Market Hurricane?
Summary
- We may be leaving the calm before the bond market storm, with turbulence likely in the weeks and months ahead. What could trigger the next big move?
- With a shortage of safe securities, money market funds and other institutions shifted from buying T-bills to parking cash in the Fed’s overnight reverse repo facility.
- The relative calm of the last two years appears to be ending. US long-term yields are coiling for their next big move, with higher Japanese rates and looming US debt issuance likely to push yields even higher.
Chris graduated magna cum laude with a B.S. in Biochemistry from California Polytechnic State University, San Luis Obispo. He joined Financial Sense® Wealth Management in 2005 and is their current Chief Investment Officer. He is currently pursuing the designation of Chartered Financial Analyst. His professional designations include FINRA Series 7 and Series 66 Uniform Combined State Law Exam. He contributes articles and Market Observations to Financial Sense and members of the trading staff.