Dysfunctional Credit Markets – Still Waiting on the Fed
As the week ended, U.S. credit markets appeared confused, if not outright dysfunctional. The 10-Year Treasury yield began February at 1.09% and reached an interim peak of 1.54% on February 25. Then it retreated to 1.42% as markets thought the rise had simply been overdone. But Fed Chair Powell’s refusal to assure financial markets regarding […]
Despite Wall Street Hype, Inflation is Not Imminent
Retail sales rose a record 5.3% M/M in January after three months in a row of decline. No doubt the $600 checks from the late December “helicopter” money drop played a large role. The Atlanta Fed now says that their GDP model pegs the current quarter’s growth at +9.5% (Annual Rate (AR)). In addition, Industrial […]
The Inflation Scare
Interest rates backed up last week. The 30-year T-Bond, which was 1.19% on August 4, closed at 1.44% on Friday (August 14). The 10-year T-Note closed at 0.71%. It was 0.52% on August 4. The CPI showed up with a +0.6% M/M rise (7.4% annual rate) for July. That pushed the Y/Y rate to +1.0% […]