Immediately below, I’ve presented the technical case for a drop in yields on 3o-Year T-Bonds to as low as 0.62% over the next several years. This may sound preposterous, especially to those who think the Fed knows what it’s doing. However, my charts don’t care what anyone thinks; they simply say what is. Besides the technical case, there are good reasons to think the downtrend in yields will steepen sharply at times. Chief among them is that the bozos who have bought into the Fed’s tightening hoax will have to unwind their positions at some point. There are other factors to consider as well. Read my tout and click on the chart for all of the details.
The Mother of All Unwinds Is Coming in T-Bonds
- June 15, 2017, 8:31 am
-
June 15, 2017, 5:34 am
Yesterday the FED fund rise rates (short term rates), and the long bond was up nearly 2 handles (lower long yields), suggesting an inverted yield cure is dead ahead.
I agree for a number of reasons.
A debt based financial system requires ever lower interest rates to avoid implosion and catastrophic deflation.
Even the shrinking yield on US Treauries will find a plethora of buyers, given that the rest of the world offers even lower rates.
It is required to avoid a situation where the National Debt interest will by itself be unpayable.
So the Fed can go through the motions of raising interest rates, while they know demand for their paper will knock those rates right back down. And if that fails, they will do what they have done in the past, just buy it themselves!
LOL!
That’s some business to be in!