Assuming no change by days end, the implied inflation rate in the 10 yr
TIPS is about to close at its highest level since late Sept at 1.595%,
exceeding the recent high of 1.58% 1 1/2 weeks ago. The price movement
today follows the action in the stock market in the belief that the
Fed’s aggressive (for better or worse) policies will be successful in
inflating our way to a better economy but watch over the next few
quarters if we reach a disconnect at some point where inflation concerns
remain sticky and the economy fails to gain any traction due to a
cautious consumer, aka stagflation. The selloff in bonds today is also
sending the FNMA 30 yr mortgage coupon back higher to 4% for the first
time since May 8th. There will be no free lunch.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “inflation/if only lunch was free”

  1. leftback says:

    More likely we will reach the point where Treasury yields are more attractive than green shoots/yellow weeds.
    The bond market blow-up is coming but it is way out there in the future.

  2. Pat G. says:

    “There will be no free lunch.”

    The free lunch program has been going on since September. It will continue as guests from all sectors gorge themselves until they implode, then the bill comes due. That’s when the S**T will really hit the fan!