Inflation? 7 yr auction solid
By Peter Boockvar - February 23rd, 2012, 2:09PM
Rising inflation expectations did nothing to dissuade buyers of the Treasury’s 7 yr note auction as it was solid. The yield was about 2 bps below the when issued and the bid to cover of 3.11 was above the 12 previous avg of 2.81 and the highest since May ’11. Also, Direct and Indirect bidders took the most amount since Dec ’10. Treasuries across the yield curve quickly responded with a rally and the 10 yr yield is back below 2.0%. This auction again highlights the growing disconnect between the message the bond market is saying about inflation and growth notwithstanding the move higher in commodity prices and an equity market that can see no wrong.
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February 23rd, 2012 at 9:25 pm
Every where one sees inflation on everything one needs. Purchasing power is reducing over the month and years.
Been a Ross and the like stores shopper for long long time. Noticing the obvious big change in the customer types. Cheap stores are full of people year after year since 2008, even on weekdays and hardly find a parking! Used to see mostly immigrants and immigrant elderly. Now Americans are the regular customers.
Another big change in these type of stores (such as Ross) is that their goods resources are drying up because big department stores are very nimble on their restocking. The reason why stores like Ross are doing so well is because they sell relatively good quality off the shelf goods that are from big name stores such as Macy’s or Nordstrom like with big marked down prices. Now it seems become a trend that because commodities and labors (China) costs are much higher beside the cut in production, less good quality goods are produced or will be produced in the near future and everything of the same good quality is in much higher prices too. Ross is likely won’t be doing as well as it’s past. Ross is a place people go for the “treasure hunt.” Now since they don’t provide much for bargan hunters they won’t do well. If you want the cheap crapy stuffs you will do better in first hand cheap stores like Target and Wal-mart. Not a second hand store like Ross.
Must also mention that stuff sell in Target and Walmart also in much worse quality than what they sold in the past. If you don’t really need the stuff to save your life, don’t go there because stuffs in those places becomes crapier and crapier. If you have the money to spend go eat few more sushi instead.
p.s. another big change is in the 99 cent store. There are full of people hardly find parking on week dates too. Used to see customers there were mainly immigrants and immigrant elderly. Now see many Americans shop there. Amazing.